Although mixed signals abound, the U.S. economy at the end of 2025 continues to show surprising resilience, defying some expectations of a slowdown. GDP growth is strong (roughly 4.3% in Q3) driven by consumer and government spending, however with a cooling and uneven labor market as well as rising unemployment (4.6% in November). Despite overall economic expansion, cost of living remains a top concern for many Americans making affordability of daily expenses challenging. While many perceive broadening strength in 2026, issues include high credit card debt, elevated interest rates, wage growth lagging nominal revenue increases, and regional disparities, leading to a “K-shaped” recovery where some thrive while others struggle.
