Amazon’s recent layoffs are indicators of the current economy. In periods of slack demand, top name companies struggle to maintain profitability without cutting labor. Consumer spending is already soft and showing signs of further deterioration, and the outlook suggests lean conditions could persist for the next two years. With employment growth weakening and incomes under pressure, both households and businesses are acting defensively, delaying purchases, conserving cash, and limiting expansion. This caution feeds back into slower overall growth. As long as current trade policies and tariffs remain in place, adding costs and uncertainty across supply chains, economic momentum is likely to slow. Economic growth is unlikely until Trump is removed from office and his tariff policies are reversed and uncertainty is reduced.
