22 US States Facing Recession or Economic Downturn, Moody's Analysis Shows

Economic Downturn in 22 US States

• 📉 A new report from Moody's Analytics indicates that 22 states are currently in a recession or on the verge of one.
• 📊 This represents nearly half of the US states experiencing shrinking economies, with more than a dozen showing growth.

Factors Driving Economic Disparities

• ⚠️ States heavily impacted by federal job losses, tariffs, or immigration crackdowns are feeling the economic pinch more severely.
• 🏭 Northern states, particularly those reliant on agriculture and manufacturing, are among the hardest hit by tariff increases and labor shortages.
• 🏛️ Areas like Washington D.C., Virginia, and Maryland are experiencing downturns driven by federal job losses.

Early Recession Indicators

• ⏱️ Moody's Analytics is providing an early warning by crunching data, as official federal data typically lags by about six months.
• 📈 Economists broadly agree that current economic conditions are challenging, with high tariff rates posing a significant hurdle for consumers and the overall economy.

Thriving vs. Stagnant Economies

• ☀️ States in the South, such as South Carolina, Florida, and Alabama, are showing solid GDP gains and thriving economies.
• 📈 North Dakota notably led the nation in GDP growth in the second quarter.
• ⚖️ Conversely, states like California and New York are merely treading water, showing minimal growth and indicating a precarious economic balance.
• ❄️ Economists warn that even thriving southern states could see their growth stall by winter if job market disparities continue.