The U.S. economy is showing signs of a slowdown in mid-2025, reflected by a 1.2% annualized growth rate in real GDP during the first half of the year. This is a drop from over 3% growth in the previous year. Job growth has also decelerated significantly, with July adding only 73,000 jobs. The unemployment rate rose to 4.25% while decreased labor force participation is contributing to these trends rather than population shifts. Economic pressures include new tariff actions and muted domestic demand, which affects inflation and rental prices.
The U.S. economy is experiencing a noticeable slowdown in mid-2025, with sluggish domestic demand growth and muted job gains, highlighting significant economic challenges ahead.
Real GDP grew at an annualized rate of just 1.2% in the first half of 2025, representing a significant step down from the more robust pace observed in 2023.
Labor demand is responding in kind, evident in the monthly nonfarm payroll growth that has sharply slowed, with July seeing an increase of only 73,000 jobs.
The unemployment rate ticked up to 4.25%, the highest level since 2021, underscoring the challenges in labor market dynamics affecting various demographic groups.
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