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What to expect from the economy in 2025

Hint: You can add it to your list of things to look forward to in the new year.

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PNC economists provide updated analyses and forecasts of trends throughout the year.

Photo provided by PNC

The new year is looking bright — and so is the 2025 economy. According to PNC Chief Economist Gus Faucher, the US economy is in good shape, thanks to four primary drivers:

  1. Low unemployment
  2. Solid job gains
  3. Good wage growth
  4. Rising household wealth

Consider this: More jobs and rising wages often result in higher incomes and increased household spending. And since consumer spending makes up approximately two-thirds of the US economy, it’s reasonable to expect that the broader economy will expand too.

Other factors that support the health of the economy and quality of life include:

  • Slowing inflation
  • Continued strength in biz investment (think: equipment, workplaces, and technology for workers)
  • Falling interest rates and lower mortgage rates

Pro tip: PNC’s economic insights are updated throughout the year, so be sure to check back in.

Dive into the data

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