4 signs the economy is in worse shape than we thought

Recent data shows that the US economy is facing headwinds.

ROBERTO SCHMIDT / AFP

• Recent data shows the economy has cooled off and might have trouble getting back to a strong point.
• The job market is tough, real GDP dropped more than initially thought, and consumer spending fell.
• These warning signs don't mean a recession is necessarily coming, although there is a risk.

The US economy is facing some serious headwinds.

A slower baseline rate of economic activity at the start of 2025...