Economist reveals what is REALLY happening beneath the US economy

• The US economy is gaining momentum, with 2Q GDP revised higher to 2.2% and consumer spending accelerating by 3.8%.
• Job growth, particularly in manufacturing and construction, has been strong, contributing to a healthy labor market.
• Despite 'junk' bond risk flares, broad capital markets are robust, with investment-grade credit spreads near record lows, and nominal GDP growth is booming.
• The economist is confident that the economy's strength is broad-based, including industrial spending, and is not solely reliant on AI data center build-outs.

SMBC Americas Chief Economist Joe Lavorgna presents a bullish outlook on the US economy, highlighting strong GDP growth and accelerating consumer spending. While acknowledging some risks in the 'junk' bond market, he asserts that overall capital markets are healthy, and the economic strength is broadening beyond specific sectors like AI data centers.