S&P expects US economic growth to slow in 2025

S&P Global Ratings said in a report that it expects U.S. economic growth to slow to 1.8 per cent next year from 2.7 per cent this year. Consumers are expected to rein in spending in the coming quarters, S&P said. Although the Federal Reserve is expected to continue cutting interest rates, S&P said : ‘We see the upcoming period of gradual easing as more of a precautionary measure to prevent growth from falling too far below potential rather than an immediate stimulus to the real economy.’ S&P said that most of the latest activity indicators suggest that economic growth momentum remains slightly above trend levels, with the exception of housing and manufacturing, which continue to be subdued. The agency also said it has raised its growth forecasts for 2026 and 2027 due to rising potential growth.