The United States economy is facing a precarious period with no apparent lifeline, according to a warning from top Wall Street economist David Rosenberg.
Rosenberg warned that the growth outlook is bleak, with little hope for a turnaround anytime soon, he said in an X post on May 29.
He stressed that the economy is sputtering outside of a few booming sectors like data centers and artificial intelligence (AI). Business investment is slowing, consumer confidence is shaky, and housing is taking a serious hit.
“The economy appears more unstable than many realize. I believe that growth is weak and will likely weaken further. Aside from the data center and AI craze, I don’t see any signs of vitality coming to the rescue,” he said.
More recession indicators
His remarks come just as pending home sales numbers hit a worrying milestone, dropping to levels even worse than those during the 2008-2009 Great Recession. He noted that such a metric does not indicate a healthy housing market.
Notably, pending home sales fell 6.3% for April, far worse than the expected 0.4% drop, as high mortgage rates offset any potential gains from increased inventory.
“Pending home sales numbers today came out lower than the worst points we experienced during the Great Recession. With capex (capital expenditures) coming to a standstill, we expect negative or near-negative GDP growth between now and the end of the year,” Rosenberg added.
Rosenberg, who has remained bearish on the economy, accelerated his downturn call due to market uncertainty caused by President Donald Trump’s trade tariffs.
As reported by Finbold, the expert had stated that the economy’s fate was already sealed, and investors needed to rescue their portfolios.
While progress is being made in making trade deals between the U.S. and key trading partners, recession calls have significantly diminished. However, as per a previous Finbold report, despite these waning calls, Moody’s Mark Zandi noted that recession risks remain “uncomfortably high.”
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