Chapter 15

Current Event

Cracks in America's economy are growing

"Some recent economic data even raises fears that we might be heading towards a possible U.S. recession in 2016. Big banks like Morgan Stanley estimate there's a 20% chance of recession this year."

Reasons why

Americans are not spending much U.S. economic growth depends on shoppers. Consumer spending makes up two-thirds of the nation's economic engine. Yet they're sending mixed signals: U.S. retail sales declined a bit in December and they were negative or flat seven times last year.

U.S. manufacturing already in recession
american factories are suffering from the global economic slowdown. Manufacturing makes up 10% of the U.S. economy

Corporate America is hurting
Earnings season isn't over yet but one thing is clear: American companies are making less money than a year ago. Put together, when America's biggest companies -- and employers -- suffer, the economy follows suit.

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