Spending's slumping, manufacturing's slowing, and delinquencies are rising. Warning signs for the US economy are piling up.
- There are lots of red flags for the US economy right now. Retail sales collapsed by the most since 2009 in December, while American manufacturing is in danger of entering a recession this year.
- American household debt just hit a new record high, meanwhile. And a record 7 million Americans have stopped paying their car loans.
- To be sure, the US economy added 304,000 jobs in January, according to the Bureau of Labor Statistics, significantly more than economists had expected.
- But economists and market watchers are keeping an eye on potential risks under the surface of the economy.
The warning signs for the US economy are coming thick and fast.
Industrial production declined 0.6% in January from a month earlier, the Federal Reserve said in a report Friday, well below expectations for a 0.1% increase.The Commerce Department said Thursday meanwhile that retail sales sank 1.2% to $505.8 billion, marking the biggest drop since 2009, as receipts fell in nearly every major category. The results were well below economist expectations for a 0.1% increase.
And according to a Fed report published Tuesday, a record number of Americans were three months or more late on making car payments. At the end of 2018, auto loans facing serious delinquency rose 2.4% to more than 7 million.
To be sure, the US economy added 304,000 jobs in January, according to the Bureau of Labor Statistics, significantly more than economists had expected.
But economists and market watchers are keeping a close eye on potential risks under the surface of the economy.