The US economy has regained its footing after a rocky spring, with consumer spending resuming at pre-tariff levels. Despite initial fears of a slowdown or recession, households have continued to spend on trips, dining out, and shopping, booking vacations and outings with renewed confidence.
Major banks such as JPMorgan Chase, Bank of America, Citigroup, and Goldman Sachs now expect moderate growth, despite earlier warnings of a recession. Travel demand has also risen sharply at United Airlines, suggesting that the economy is outperforming expectations.
Small businesses are feeling the surge, with nearly one in three entrepreneurs planning to hire new staff in the coming months. This optimism is spreading beyond Wall Street and into Main Street, as small businesses expand services to meet rising customer interest.
While growth remains modest, inflation remains steady but above the Federal Reserve’s ideal. Manufacturing has shrunk for four consecutive months, and Latino consumer spending showed signs of slowing after recent immigration raids. However, experts caution that the impact of tariffs may unfold slowly over time, with effects emerging months after implementation.
To stay ahead of the curve, investors can monitor key economic signals using the TipRanks Economic Indicators Dashboard. With retail sales ticking up by 0.65% and inflation holding at 2.67%, there are signs that consumer activity is firming up despite sluggish GDP growth.
Source: https://www.tipranks.com/news/the-u-s-economy-just-got-its-mojo-back-as-consumers-brush-off-tariff-trauma