According to Moody's Analytics chief economist Mark Zandi, the economy is facing a downturn with significant indicators such as a weakening labor market and flat consumer spending. Construction and manufacturing sectors are contracting, and job growth has significantly slowed. The recent jobs report showed payroll growth at only 73,000 and downward revisions for previous months. Key inflation metrics also point to challenges for the Federal Reserve in stimulating growth, as inflation remains above target levels, complicating their response to the economic outlook.
"The economy is on the precipice of recession. That's the clear takeaway from last week's economic data dump," Zandi wrote. "Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall."
Payrolls grew by just 73,000 last month, well below forecasts for about 100,000. Meanwhile, May's tally was revised down from 144,000 to 19,000, and June's total was slashed from 147,000 to just 14,000."
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