Talks of an upcoming recession affecting the U.S. economy have been going on for a while now since 2020. Every year, analysts predict a recession but the U.S. economy comes out stronger and performs as expected. Inflation which stood at 8% last year has now cooled down to 3.1% but is still far off from the 2% mark to stabilize.
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The Feds’ hiking interest rate for three months simultaneously helped inflation to cool down in the U.S. However, data shows that the 2023 Christmas holiday season was very strong with consumer confidence rising by 6.4 points. Spending on restaurants rose by 8%, while online shopping climbed by 6%.
These developments put the U.S. economy in a better position this year in 2024 and could experience real momentum. In this article, we will highlight why the U.S. economy could perform well in 2024.
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Real Momentum Possible in 2024 For The U.S. Economy
Several points indicate that the U.S. economy is positioned to perform according to expectations this year in 2024. Below are the top 5 points that highlight why the U.S. economy will experience real momentum.
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- Consumer spending during the Christmas holidays in the U.S. rose by 3.1% YoY.
- Wages experienced an increase last year compared to 2022.
- Consumer confidence hit 69.70, up from 61.30 in the last few months.
- The CPI data shows inflation cooling down to 3.1%.
- Gasoline is below $3 in more than half the states.
All these indicators point toward a stronger U.S. economy and are being reflected in the charts this year. The momentum is most likely to be carried forward from here with the U.S. household showing pessimism about the economy.
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“These trends are rooted in substantial improvements in how consumers view the trajectory of inflation,” said Michigan survey director Joanne Hsu to Reuters.
