Summary
As 2026 approaches, the United States economy is doing well in some areas but also shows signs of possible problems. Growth has been strong, with a significant boost from investments in artificial intelligence, but many Americans still feel unhappy about their financial situation, despite continuing to spend money.
Key Facts
- The U.S. economy has grown by 4.3% in the third quarter of 2025, surpassing expectations.
- AI investments have been a major factor, contributing about 40% of growth in 2025.
- Consumer sentiment is low, with the University of Michigan's index at 53.3 in December.
- Despite low confidence, consumer spending increased by 3.5% in the July-September quarter.
- Wealthy Americans account for about half of all consumer spending.
- Analysts have divided opinions about AI's potential impact on future productivity.
- Economists have mixed views on economic ratings, with some giving it six out of ten.
- The U.S. stock market experienced significant volatility due to tariff-related announcements.
