The answer is both – and that makes for a crazy economy in which there is no clear indication of its future direction. In 2015 and 2016, for example, the U.S. manufacturing sector contracted, going into a “mini-recession,” then bounced back with strength in 2017. In the background, the trade war and the tit-for-tat escalation of tariffs by both sides continue to stoke fears about the impact on the economy. Outside the trade war, there are other pressures on the U.S. economy, most notably fears of economic contraction in Europe. Wait-and-see is the best attitude in this crazy economy, in which the climate could change quickly, in one direction or the other.

Source: Forbes October 07, 2019 19:18 UTC