Chart of the Week
The U.S. economy continued to expand through Q2 2026, although the pace of growth slowed. While headline GDP was weighed down by trade and inventory trends, underlying private-sector demand strengthened. Strong corporate profits and AI-driven capital spending continue to provide important growth support, while consumer spending has been supported by stable labor market conditions and stock market wealth.
At the same time, several headwinds remain. Elevated mortgage rates and affordability challenges continue to pressure the housing market, while high energy prices and geopolitical instability have weighed on sentiment and some business investment decisions.
Overall, NDR's Business Cycle analysis suggests the expansion remains intact, with technology investment serving as a key driver of growth as investors navigate a more selective economic environment.
Delve deeper into the dynamics shaping the economic landscape and offer actionable strategies for investors. Let us help you, See the Signals.™ To subscribe to the NDR Blog, click here.
Ned Davis Research, Inc. (NDR), or any affiliates or employees, or any third-party data provider, shall not have any liability for any loss sustained by anyone who has relied on the information contained in any NDR publication. The data and analysis contained herein are provided “as is.” NDR disclaim any and all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. Past recommendations and model results are not a guarantee of future results. Using any graph, chart, formula or other device to assist in deciding which securities to trade or when to trade them presents many difficulties and their effectiveness has significant limitations, including that prior patterns may not repeat themselves continuously or on any particular occasion. In addition, market participants using such devices can impact the market in a way that changes the effectiveness of such device. This communication reflects our analysts’ opinions as of the date of this communication and will not necessarily be updated as views or information change. All opinions expressed herein are subject to change without notice. NDR, or its affiliated companies, or their respective shareholders, directors, officers and/or employees, may have long or short positions in the securities discussed herein and may purchase or sell such securities without notice.
