America lost its momentum at the end of 2015.
The U.S. economy only grew 0.7% between October and December. It’s the slowest pace since the first quarter of 2015, when the economy grew at a 0.6% pace as parts of the country battled with blizzards and businesses shutting down.
The slowdown in the last three months of 2015 is more worrisome. A global economic slowdown appears to be finally weighing heavily on the American economy. Despite a strong job market, other signs point to slowing growth.
American manufacturing, which makes up 10% of the economy, is in a recession and the industry key index, ISM, has declined for six straight months. Consumer spending was negative or flat for seven out of 12 months last year.
The country’s biggest corporations, and employers, are also watching sales and profits decline as overseas business is hurt by the strong dollar, falling oil prices and uncertainty over China’s economy.
Friday’s low figure will likely stoke more debate about the possibility of an American recession in 2016. In any year, there’s about a 10% chance of recession, but some banks, such as Morgan Stanley, estimate there’s a 20% chance the economy dives south this year.
