In President Trump’s first 100 days back in office, early signs of economic strain are emerging. The U.S. economy shrank by 0.3% in the first quarter, a sharp drop from 2.4% growth in late 2024. Businesses rushed to stock up ahead of tariff hikes, inflating inventories, while a decline in government spending further dampened growth, according to newly released data from the Commerce Department.
Consumer sentiment and spending are weakening. Personal consumption grew by just 1.8%, a sharp decline from earlier quarters. A key consumer confidence index has dropped for five straight months, with tariffs now a bigger concern than inflation. Although unemployment remains relatively stable at 4.2%, economists warn that worsening expectations about future jobs could indicate deeper trouble ahead. Since Inauguration Day, the S&P 500 has fallen 7.3% and the Nasdaq 11%, marking the worst market start to a presidency since the 1970s.
“Recession often begins when confidence cracks,” said Moody’s chief economist Mark Zandi “Consumers lose faith that they’re going to be able to hold onto their job, and they cut back on spending and we go into recession,” as reported by NPR.
Morningstar, a respected investment research firm known for its financial analysis, outlines the leading signs of a potential recession as follows:
Based on Morningstar’s recession indicators, three out of nine key warning signs are present: a decrease in real GDP, reduced business spending, and stock market declines. While this doesn’t yet indicate a full recession, it underscores growing economic pressures. Trump’s tariff policies have added volatility, with some import-reliant businesses facing falling sales and rising costs, even likening it to the 2008 crisis. In times like these, staying informed without panic is essential, thoughtful policy and strategic actions can still guide the economy toward stability.
Texas Lt. Gov. Dan Patrick will lead…
A team of researchers from The University…
In the wake of the devastating 2022…
John Bash, a prominent attorney known for…
A group of University of Texas students…
This website uses cookies.