Diverging economic data raises question over a US slowdown

U.S. President Donald Trump waves as he returns to the White House after attending a board meeting at the Kennedy Center, in Washington, D.C., U.S., March 17, 2025. REUTERS/Carlos Barria/File Photo

US economic data are diverging wildly, fuelling a debate over whether rising anxiety from President Donald Trump’s trade policies will push a moderating economy into a serious downturn.

Surveys of sentiment among households and businesses, known as “soft data”, are warning of a marked slowdown ahead as Trump pushes forward with tariffs and steep cuts to federal spending.