The US economy is sending mixed signals, presenting what analysts describe as two faces at once.
Strength and strain
On one side, the labour market remains broadly resilient, with unemployment near 4.3% and wages still growing. On the other, consumer spending is moderating as elevated prices squeeze purchasing power and hiring slows.
The road ahead
With inflation sticky and job growth cooling, the economy is expected to expand at a more subdued pace through 2026. How households respond to the squeeze — and how the Fed balances inflation against employment — will shape the outlook.
Sources: KPMG, U.S. Bank.