Consumer confidence remains at high
levels. Trade and tariff tensions could sap consumer optimism, but on the other
hand, labor market conditions continue to support consumer confidence and
spending, helping the US economy recover from a disappointing second quarter.
For businesses, confidence is less upbeat. Investment and business spending have
weakened in recent months and remain lackluster. Expectations of slower economic
activity and Fed rate cuts represent an adjustment to an economic outlook
returning to its long-term potential of about 2 percent economic growth.