The U.S. economy in May 2025 shows mixed signals. While non-farm payroll employment increased and wages outpaced inflation, real GDP decreased by 0.2% in Q1 2025, largely due to increased imports as businesses front-loaded purchases ahead of tariffs. Consumer sentiment, despite a recent rise, remains cautious, and new vehicle sales saw a decline, likely due to tariff impacts. The housing market is more balanced with increased inventory, though affordability is still a concern due to high mortgage rates. Overall, evolving trade policies and tariffs continue to create economic uncertainty.
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