Earlier this month, the U.S. Labor Department reported that job growth slowed in July and that unemployment hit 4.3%, the highest rate since October 2021. The weaker-than-expected report prompted Goldman Sachs to raise the odds of a recession from 15% to 20% and JPMorgan Chase to up the chances from 25% to 35%.
Based on the new data, some strategists think a recession is still on the way, but EY Chief Economist Gregory Daco says these worries are “overstated.”
“Labor market conditions have visibly softened, but economic momentum remains positive,” Daco told Entrepreneur in an email. “The U.S. economy is still moving forward at a modest to moderate pace.”
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