The consumers in America are currently supporting the worldwide economy. By the looks of it, this is an entirely enduring source of strength which helps in keeping the US away from reducing economic activity. Moreover, American consumers also draw up a very sharp contrast concerning the rest of the world.
Nevertheless, a significant number of signs point out a possible downturn in the US. The economists are also becoming much more skeptical, considering the skepticism of the fact that consumers are going to continue to use their wallets freely. If the consumers, fail to do this regularly, then it will fasten the emergence of the first-ever recession of the US for more than a decade.
Most of the consumers in the US aren’t unemployed, and on the other hand, they are also experiencing a steep rise in their wages. And this gave the consumers the utter confidence which they need to increase their ability to spend in recent months. Moreover, this also became a critical point as far as businesses spending are taken into consideration in the United States. Furthermore, the manufacturing industry of the US also did fall into a depression. By the looks of it, trade wars are the reason why the countries with large economies such as Germany have started to sink.
The POTUS, Donald Trump, also came forward with a statement by saying that the consumers are doing an incredible job when it comes to spending money to attain goods and services. However, a significant development might easily shift the view. In addition to this, the stock market of the United States also saw the massive single-day decline of 2019 on Wednesday itself. There is a highly likely chance that this did escalate the trade war that Trump has began with China.
When it comes to predicting a solid track record, the bond markets are doing a fabulous job in terms of recessions. Recently, the bond market did also flash some signs of warning considering the recessions. The ongoing US-China trade war is yet to hit most of the consumers directly. Nevertheless, in the long run, the trade wars force the rising tariffs considering the staple goods and services like clothing products and food.
Grant Thorton’s chief economist, Diane Swonk said that the present-day US consumers helm the role of the Greek god Atlas as they are directly responsible for shouldering the economy of the entire country. Nevertheless, at any point of time things can go sideways and there will be damage to the economy of the US.