US Economic Outlook for 2026

As the U.S. economy approaches 2026, it presents a mixed picture, with GDP growth surpassing expectations at 4.3% in Q3 2025, largely driven by AI investments. Despite this growth, consumer sentiment remains low, with an index of 53.3 in December, reflecting dissatisfaction with financial conditions. The stock market has performed well, with the S&P 500 up nearly 18%, benefiting wealthier households disproportionately. Inflation is moderating at 2.7%, but many Americans still feel economic pressure.

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