"Chief economist Mark Zandi exclusively told Fortune that 22 states are contracting and many lower- and middle-income households are "hanging on by their fingertips," struggling with debt and slowing wage growth despite steady employment. Private data during the federal shutdown shows weakening consumer confidence, particularly among those earning under $35,000. Zandi warned that if economic softness spreads from smaller, manufacturing-heavy states to giants like California or New York, the national economy could tip into recession."
"Everything should feel fine in the economy. Gross domestic product (GDP) was up a healthy 3.8% in the past quarter, and unemployment has stayed at a steady 4.3%. So why does it seem so tough? The short answer is: Depending on where you live and who you are, the environment around you is recessionary. According to analysis from Moody's, 22 U.S. states are seeing their economies contracting."
Strong national indicators mask deep regional and income-based weaknesses. GDP rose 3.8% and unemployment held at 4.3%, while Moody's finds 22 states contracting, 16 growing, and 13 treading water. California, Texas, and New York drive national growth, obscuring struggles elsewhere. Many lower- and middle-income households are 'hanging on by their fingertips,' facing debt burdens and slowing wage growth despite steady employment. Private data during the federal shutdown shows weakening consumer confidence, especially for households earning under $35,000. If economic softness spreads from smaller manufacturing states to major economies, the national economy could tip into recession.
#regional-economic-disparity #state-level-recession #household-financial-stress #consumer-confidence
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