GYF’s Business Valuation & Litigation Support Services Group continues to monitor economic conditions. As of the first quarter of 2025, the U.S. economy presents a picture of cautious resilience amid evolving domestic and international headwinds. Economic activity has slightly expanded, and inflation is gradually trending toward the Federal Reserve’s long-term target.
Labor markets remain tight yet stable, with modest job growth concentrated in health care and social sectors. While recent tariff actions and executive policies under the new administration introduce elevated uncertainty – particularly regarding trade and government operations – the broader economic indicators suggest moderate, sustainable growth over the near to medium term. Investor sentiment and consumer confidence have weakened, reflecting concerns about inflation persistence and policy volatility. However, ongoing investment in infrastructure and real estate, easing supply chain pressures, and anchored long-term inflation expectations support a cautiously optimistic outlook.
Overall, while the potential for policy-driven disruptions remain high, the fundamental economic environment continues to support a stable valuation context, particularly for businesses closely tied to domestic markets and essential services. Continued monitoring of inflation dynamics, interest rate policy, and geopolitical developments will be essential for forward-looking investment and valuation decisions.
For more details about Q1 of 2025, download our Economic Recap.
