Uncertainty Clouds the Economic Outlook

Consensus expects a modest increase in GDP growth of 1.16% from Q3 2025 to Q2 2026. This suggests a general belief in continued, albeit perhaps not robust, economic expansion. Wells Fargo, on the other hand, presents a more pessimistic near-term outlook, forecasting a “bumpy ride” and an outright decline in GDP growth in Q3 2025. This projected dip is attributed to a decrease in consumer and business spending, following an anticipated pre-tariff spending surge that likely extended into early Q2. This implies a potential pull-forward of demand that will then ...