Fri, 15 Aug 2025

Fri, 15 Aug 2025 The US economy is a puzzle but the pieces aren't fitting together

Can the world's largest economy skirt damage from tariffs?

* Job creation was almost non-existent in May and June, and sluggish in July
* Discouraged workers are growing in number
* August's jobs report sent the stock market sinking and prompted President Trump to fire the US Bureau of Labor Statistics commissioner
* Economists warn that the economy may be on the precipice of a recession
* Consumer spending has stayed more resilient than expected, despite weakening
* Shares quickly resumed their upward march after the August hit
* Consumer prices rose 2.7% in July compared with a year ago
* Prices for imported staples like coffee and bananas have already jumped
* Forecasters expect price increases to widen in the months ahead
* The producer price index accelerated at its fastest pace in more than three years in July, suggesting stagflation may be staging a return
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