The new year is looking bright — and so is the 2025 economy. According to PNC Chief Economist Gus Faucher, the US economy is in good shape, thanks to four primary drivers:
- Low unemployment
- Solid job gains
- Good wage growth
- Rising household wealth
Consider this: More jobs and rising wages often result in higher incomes and increased household spending. And since consumer spending makes up approximately two-thirds of the US economy, it’s reasonable to expect that the broader economy will expand too.
Other factors that support the health of the economy and quality of life include:
- Slowing inflation
- Continued strength in biz investment (think: equipment, workplaces, and technology for workers)
- Falling interest rates and lower mortgage rates
Pro tip: PNC’s economic insights are updated throughout the year, so be sure to check back in.
