The quiet erosion beneath US growth

The US economy appears resilient, judging from key economic measures. AI-driven capex continues to power investment, support equity markets, and sustain a wealth effect that has propped up consumption. Real GDP growth remains positive. Private sector balance sheets are in generally good condition and many higher income and wealthy households have benefited from equity markets gains. However, fragilities are increasing, especially as US households must now absorb another meaningful hit to their purchasing power, on top various other drags on real income growth. Tariffs, higher energy prices,...