×
GreekEnglish

×
  • Politics
  • Diaspora
  • World
  • Lifestyle
  • Travel
  • Culture
  • Sports
  • Cooking
Sunday
23
Aug 2026
weather symbol
Athens 32°C
  • Home
  • Politics
  • Economy
  • World
  • Diaspora
  • Lifestyle
  • Travel
  • Culture
  • Sports
  • Mediterranean Cooking
  • Weather
Contact follow Protothema:
Powered by Cloudevo
> World

Warning signal for the U.S. economy from growth, inflation, and real estate

A three-year record for inflation, which climbed to 3.8% — along with new data on disposable income and a downward revision of GDP — contradicts the White House’s optimism

Newsroom May 28 10:57

Δείτε περισσότερα άρθρα μας στα αποτελέσματα αναζήτησης

Add Protothema.gr on Google

Inflation, growth, real estate… The data released in the United States today show that the world’s largest economy is less robust than President Donald Trump regularly claims.

Within just a few hours, several official statistics painted a gloomy picture, just months ahead of the November midterm elections.

GDP growth for the first quarter was revised downward to an annualized 1.6%, from a previous estimate of 2%. This means it is far from the 4–6% target by year’s end that the White House had hoped for, based on a recent forecast by Trump adviser Kevin Hassett.

The BEA statistical agency also estimates that consumer spending and investment in the first quarter had been overestimated.

One of the two inflation indicators, the PCE (Personal Consumption Expenditures Price Index), also released by the BEA, confirms that prices rose in April at a pace not seen in nearly three years (3.8% year-on-year). This is mainly due to a surge in fuel prices following the start of the war in Iran.

The BEA report also shows that Americans’ disposable income is declining, as wages are not increasing as fast as inflation. The savings rate fell to 2.6%, from 3.2% in March.

“Oops,” commented economist Heather Long of Navy Federal Credit Union on X. “This shows how strained Americans’ finances currently are,” she added, noting that the situation is not “sustainable.”

No relief comes from the labor market either, where hiring and wage growth remain stagnant, economist Gregory Daco noted. He explained that the economy is being supported by three pillars: affluent consumers, investment in artificial intelligence, and rising financial asset values. “These pillars obscure the fact that the foundations of the economy are becoming increasingly fragile,” he added, pointing to weak consumption growth and a sluggish housing market.

>Related articles

Secret tanker crossings are keeping oil prices from soaring through the Strait of Hormuz

Metlen: Historic milestone with first waste combustion at the Protos ERF facility in the UK

“Tourism for All 2026–2027”: Last day to apply — deadline time and step-by-step process

Based on additional data released today, sales of new homes fell in April, disappointing White House expectations for growth.

“Prospective buyers are simultaneously facing rising property prices, higher interest rates, and declining purchasing power,” said economist Yelena Maleyev of consulting firm KPMG.

Thirty-year mortgages, the most popular in the U.S., now carry an average interest rate of 6.53%, according to mortgage agency Freddie Mac. The rate had fallen below the symbolic 6% threshold on February 26, two days before the U.S.-Israeli strikes on Iran.

Ask me anything

Explore related questions

#economy#GDP#Navy Federal Credit Union#real estate#U.S.#United States
> More World

Follow en.protothema.gr on Google News and be the first to know all the news

See all the latest News from Greece and the World, the moment they happen, at en.protothema.gr

> Latest Stories

French tourist dies after collapsing on hike near Balos in Crete

August 23, 2026

Greece braces for a prolonged heatwave, with a new hot spell arriving on Friday that sizzles into September

August 23, 2026

Search underway for Spanish businessman who fell overboard near Pylos

August 23, 2026

“I didn’t want to hit it,” claims driver who killed sleeping dog in Corfu

August 23, 2026

US Ambassador to Greece cruises the Ionian islands aboard the world’s largest luxury catamaran

August 23, 2026

Killer of woman in Nea Smyrni was married and had a child, and had faced rape and stalking allegations in Albania

August 23, 2026

Future generations won’t be burdened with debt, and dialogue with Turkey isn’t submission, PM writes in Sunday review

August 23, 2026

Iranian hackers knocked out UK power plant for four days, Telegraph reports

August 23, 2026
All News

> Greece

In reverence, the emotional deposition in Jerusalem, see photos & video

The Holy Temple of the Resurrection opened after many days due to the war between Israel and Iran

April 10, 2026

In the final stretch for the accreditation of joint master’s degrees: Aiming for their launch in the coming academic year

April 10, 2026

Schedule for Epitaph Procession today (10/4)

April 10, 2026

Perfect weather for Easter excursions, according to Tsatrafyllia’s forecast

April 10, 2026

Easter in Greece: The customs that continue in Greek tradition – From Nafpaktos to Corfu

April 10, 2026
Homepage
PERSONAL DATA PROTECTION POLICY COOKIES POLICY TERM OF USE
Powered by Cloudevo
Copyright © 2026 Πρώτο Θέμα