Moody’s chief economist Mark Zandi has warned that the U.S. economy is flirting with a recession, with states making up nearly a third of GDP already in, or close to, a recession.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
“State-level data makes it clear why the U.S. economy is on the edge of recession,” Zandi said in an X post. “Based on my assessment of various data, states making up nearly a third of U.S. GDP are either in or at high risk of recession, another third are just holding steady, and the remaining third are growing.”
U.S. Enters ‘Jobs Recession,’ Says Zandi
Zandi said that the U.S. has already entered a “jobs recession” following Friday’s nonfarm payrolls data. August added just 22,000 jobs, below the estimate of 75,000, while the Bureau of Labor Statistics revised June’s data to a loss of 13,000 jobs. That revision snapped a 53-month streak of monthly payroll gains.
“It’s not a full-blown recession, as GDP, incomes, and profits are still slowly growing,” Zandi said. “But for how much longer, if the economy continues losing jobs?”
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.