The U.S. Economy Just Got Its Mojo Back as Consumers Brush Off Tariff Trauma

 

The U.S. Economy Just Got Its Mojo Back as Consumers Brush Off Tariff Trauma

Big banks like JPMorgan Chase initially forecasted a slowdown or even a recession. Those warnings have faded as economic indicators have improved. The bank now expects continued growth, though at a moderate pace.

Bank of America, Citigroup, and Goldman Sachs have also reported healthier revenues. At United Airlines, travel demand rose sharply. All of this suggests that the economy is outperforming earlier fears.

A survey, conducted by marketing platform Constant Contact, of over 1,200 small-business owners showed that many are seeing stronger demand than projected in January. Nearly one in three entrepreneurs now plans to hire in the coming months.

These signs suggest that optimism is spreading beyond Wall Street and into Main Street. Small businesses are adding staff and expanding services to meet rising customer interest.

Still, growth remains modest and inflation is steady but above the Federal Reserve’s ideal. Manufacturing has shrunk for four consecutive months as of June.