Is the US economy slowing down? Indeed, the growth of the U.S. economy has turned sluggish and is far from as sound as before. After years of warning that a crash was just around the corner, economists and Wall Street analysts have largely abandoned the idea of a recession or a meaningful rebound. However, some experts pointed to the report as a sign of the possible emergence of twin threats: a gradual economic cooldown alongside stubborn inflation. That slowdown is increasingly evident in various sectors. Signals from the US labor market became decidedly less mixed as of Friday: The government’s latest monthly jobs report showed an unambiguous slowdown across various industries. The unemployment rate, while still low, is exhibiting signs of potential upward pressure.

Recent data paints a concerning picture. The US economy shrank in the first three months of the year as government spending fell and imports surged due to firms racing to get goods into the country ahead of tariffs. Worries that the US economy is headed for a recession thanks to President Donald Trump’s tariffs are mounting in the wake of new data showing the US economy shrank, exacerbating fears of a possible decay. While a full-blown recession isn't guaranteed, the indicators suggest a need for cautious optimism and careful monitoring of future economic reports.