Despite growth now—collapse is inevitable—many factors
Bhattarai 7/25 [Abha; July 25; Economics correspondent for The Washington Post; Previous writter for the New York Times, Wall Street Journal, Reuters and Tampa Bay Times; “U.S. economy grew 2.8% in second quarter, a robust unexpected strengthening,” https://www.washingtonpost.com/business/2024/07/25/gdp-q2-economy/]
But economists say the pickup in economic growth, and consumer spending in particular, isn’t expected to last long term. Many lower- and middle-income families are struggling to cover basics, and more people are falling behind on loan payments. The rapid recovery since the onset of the pandemic has recently lost steam, as high borrowing costs force households and businesses to rethink spending. Home sales have stalled, manufacturing is slowing, and factories are seeing a drop-off in demand for U.S.-made goods. Meanwhile, the unemployment rate — at 4.1 percent as of June — has edged up for three straight months.