The US economy is showing signs of stabilization despite a sluggish first half of the year. While certain sectors like manufacturing and housing are struggling, consumer spending remains resilient.

The recent rise in unemployment is largely due to increased labor supply rather than job losses. Inflation is decelerating, which should support real disposable income and consumption. Although near-term recession risks remain low, challenges persist in consumer sentiment and building permits.

Overall, the economy appears to be transitioning to a more sustainable growth rate, albeit with some bumps along the way.