The US economy slowed sharply at the end of the 2025, weighed down by a weekslong government shutdown.
Despite the slowdown, most analysts agree the economy is on solid footing, thanks largely to the AI boom and consumer spending driven by wealthier households.
Still, the resilience masks a more complicated picture, economists said, given the cooling labor market and a record trade deficit in goods in December.
US President Donald Trump vowed to bring manufacturing home and lower the cost of living, and with factory activity only just beginning to recover after a prolonged slump, and inflation largely unchanged, affordability is set to dominate the conversation heading into the midterm elections, Bloomberg wrote.
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