JPMorgan expects U.S. GDP growth to slow to a crawl over the next two quarters

Economic activity both in the U.S. and around the world is likely to slow considerably into the end of this year and the beginning of 2026, according to JPMorgan Chase. In a forecast released Monday, the firm's economists see U.S. gross domestic product continuing along at a solid 2.5% annualized rate in the third quarter, but then declining to about half that for the following two periods. Specifically, the firm says GDP likely will increase at just a 1.2% pace for the fourth quarter of 2025 and Q1 of 2026, owing to a deceleration in the labor market and consumer spending. "Employment gains slowed to a stall in August and hours worked are contracting on the quarter, developments that are unusual for an economy poised to generate above-potential growth," economist Nora Szentivanyi said in