The U.S. economy: Slowing down, but not falling apart

Feb 26

1 min read

The U.S. added 130,000 jobs in January and unemployment is at 4.28%. That seems to be alright until we examine closer. The average monthly job growth in 2025 was revised to 15,000. Most of those jobs came from healthcare and government agencies, not private companies.

On the manufacturing side, electronics, aircraft, and machinery are growing. However, furniture, cars, and textiles are not. Gains are mostly in industries closely connected with AI investments and government incentives rather than consumer demand.

Americans still spend, especially on dining and experiences. Big purchases however, experience great pressure. Auto loan payment failures are rising, and car financing terms are expanding to seven years in order to keep monthly payments more feasible.

Looking at the bigger picture, the economy isn't in a recession, but it isn't healthy. Growth is slow, inflation is stubborn, hiring isn't particularly strong, and the Supreme Court's tariff ruling added more uncertainty to policy and government revenue.

The future largely depends on decisions made in Washington.

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