The U.S. economy continues to perform like a Ferrari with a balky engine: stretches of strong performance on the highway, followed by stints in the garage for repairs. Economic growth overall is steady but slow. In May, the United States recorded the 75th consecutive month of job gains, the most ever, and the unemployment rate is low. Yet productivity is not growing, and wages for many workers remain stagnant. Moreover, the economies of oil-dependent states are struggling because of low oil prices. Then, in late June, came Brexit. The British vote to withdraw from the European Union roiled global stock markets, and some economists warned the turmoil could drag the U.S. economy down. But others expect the economy to grow modestly in the months ahead.
|Traders on the floor of the New York Stock Exchange on June 24 after the news broke that Britain had voted to leave the European Union. The Dow Jones industrial average quickly fell almost 500 points. (Getty Images/Spencer Platt)|
Many Americans may not feel it, but the United States is one of the bright spots in the troubled world economy. Statistically, America has recovered from the 2007-09 recession, and most economists project continued improvement. But the recovery continues to be slow and unevenly distributed across the country. In addition, analysts warn of threats that could impair growth.
“Given that the rest of the world is slowing down, what the United States has accomplished is really remarkable and shows the resilience of the U.S. economy,” says Rafiq Dossani, senior economist at RAND Corp., the independent research organization headquartered in Santa Monica, Calif.