In the latest US economy news, economic indicators show that the American economy is performing exceptionally well. Despite the numbers, many Americans continue to feel discontent. This disconnect between statistical growth and public sentiment stems from several factors including housing costs, inflation, political biases and personal financial pressures.
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The latest US economy news highlights that unemployment remains low, even though it has inched up slightly to 4.1%. This figure shows a near low, comparable to the record lows seen since the 1969 moon landing.
Under the Biden administration, the US has added 368,000 jobs per month on average. While this growth has slowed, the economy still adds about 172,000 jobs monthly, a level comparable to pre-pandemic numbers during the Trump administration.
The demand for workers is high, with more job listings than there are job seekers. This mismatch in supply and demand highlights a labor market.
The latest US economy news reports that GDP grew at an annualized rate of 2.8% in the last quarter. This growth rate shows a healthy expansion, similar to levels seen during previous administrations.
Among G7 countries, the US economic growth rate is projected to be the highest this year, according to the International Monetary Fund.
Consumer spending, one of the main drivers of GDP, is strong, contributing to this growth.
The latest US economy news reports that wages are still increasing at an adjusted rate of 3.9%. While lower than the inflation-driven surges of previous years, this growth rate means that Americans’ purchasing power is gradually expanding as wage growth continues to outpace inflation.
For the 27th consecutive month, inflation-adjusted disposable income per capita has risen. This steady increase provides Americans with more money to spend, even as prices remain elevated.
In the latest US economy news, consumer spending increased by 3.7% in the previous quarter, the rise since early 2023.
Since consumer spending constitutes more than two-thirds of the economy, this increase is vital to economic growth.
Consumer confidence surged in October to its highest point since early 2024. Although it remains below pre-pandemic levels, this rise in confidence suggests that consumers are optimistic and likely to continue spending.
The latest US economy news highlights that home prices have consistently reached record highs for 15 months. For homeowners, this increase represents wealth growth, but for prospective buyers, it makes entering the housing market difficult.
High mortgage rates, hovering around 7% are compounding the housing affordability crisis. These rates have slowed home sales with only 2.5% of homes changing ownership this year, a 30-year low.
Renters are facing financial burdens, with nearly half spending more than 30% of their income on housing.
The latest US economy news shows that inflation has returned to near-normal levels. However, prices remain approximately 20% higher than when President Biden took office.
While gas prices have dropped from their 2022 peak, they remain a crucial point of concern. With the average price of gas falling to under $3 per gallon in many states, Americans are seeing some relief, though not enough to fully offset inflation’s lingering impact.
Although inflation has slowed, the cumulative effect of rising prices since 2020 remains a consistent reminder of the economic climate Americans faced over the past few years.
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According to the Commerce Department, the US economy grew at an annual rate of 2.8% in the third quarter of 2024. This growth is slightly down from the previous quarter’s 3% rate but still positions the US economy as one of the strongest among major economies this year.
Consumer spending has been a primary driver of this growth, rebounding from a slowdown earlier in the year. These numbers show an economy on solid footing, even as Americans continue to struggle with high prices and financial pressures.
With a presidential election just days away, the economy is a top concern for voters. Despite strong economic indicators, public sentiment remains sour with polls showing that many Americans view the economy as bad.
A recent poll by the Associated Press-NORC Center found that 62% of Americans hold a negative view of the economy.
High inflation rates over the past few years including a roughly 21% price increase across essentials and this have led to persistent economic worries, affecting how people perceive the current administration’s economic performance.
Public opinion on the economy is divided along party lines, with 61% of Democrats viewing the economy positively, in contrast to just 13% of Republicans.
Partisanship affects not only the perception of economic performance but also trust in the two major parties on economic issues.
While inflation has slowed, the effects of price increases continue to strain American households. Many individuals report that while prices have stabilized, they remain higher than pre-pandemic levels especially in areas such as housing, food and healthcare.
For many Americans, especially those on fixed incomes or earning lower wages, these price increases mean little improvement in day-to-day affordability.
Despite the positive latest US economy news, many Americans still feel financially constrained. High living costs, particularly in housing, mean that even those with relatively high incomes find themselves living paycheck to paycheck.
According to a recent survey, 20% of households earning over $150,000 annually struggle with expenses. The US Department of Housing and Urban Development defines cost-burdened households as those spending more than 30% of income on housing.
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