Moody‘s Analytics Chief Economist Mark Zandi warned on Sunday that the American economy stands “on the precipice of recession” following last week’s disappointing economic data releases that sent major indexes tumbling.
Economic Data Points To Contraction
“The economy is on the precipice of recession. That’s the clear takeaway from last week’s economic data dump,” Zandi wrote on X. “Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall.”
July’s jobs report showed just 73,000 new positions added, well below the expected 110,000. Unemployment rose to 4.2% while wage growth remained elevated at 3.9% year-over-year. The report included massive downward revisions of 258,000 jobs for May and June combined.
Tariffs, Immigration Policy Blamed
Zandi attributed the economic weakness to “increasing U.S. tariffs and highly restrictive immigration policy.” He explained that tariffs are “cutting increasingly deeply into the profits of American companies …