Economy Defies Recession

Benzinga

The U.S. economy kept expanding in 2025 as strong consumer spending and AI investment offset tariff and immigration shocks, though economists warned of risks from jobs, savings, and policy disruptions.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street

00:02The U.S. economy continued expanding in 2025 as consumer spending and artificial intelligence

00:08investment offset trade and immigration shocks, according to The Wall Street Journal.

00:13Household consumption and AI-related business investment accounted for nearly 70% of third

00:18quarter growth, according to RSM economists. Economists had raised recession odds earlier

00:23this year after Trump announced broad tariffs, but growth rebounded in the second and third quarters.

00:28The economy contracted in the first quarter due to import stockpiling ahead of tariffs,

00:34then recovered as consumer spending stayed firm. Spending growth has been driven by the top 10%

00:39of earners, who now account for nearly half of national spending, supporting strong demand for

00:44premium travel, international flights, and high-end luxury purchases. Economists flagged risks from a

00:51weakening job market, falling savings, flat inflation-adjusted income, and a government

00:56shut down that could weigh on growth. For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended