U.S. economy is showing cracks

NEW YORK — America’s economy is starting to see cracks after closing out 2014 with Superman strength.

The U.S. job market had its best year of gains last year since 1999, and economic activity hit a whopping 5% in the third quarter — the best quarter since 2003.

Three months later, the U.S. economy is looking a little tired. It’s losing momentum in puzzling ways. Hiring is still strong, but experts are starting to scale back their growth forecasts.

Federal Reserve chair Janet Yellen summed it up well in a speech Friday: “If underlying conditions had truly returned to normal, the economy should be booming.”

Economists say there are two main problems: Workers’ wages aren’t growing much, if at all. As a result, Americans aren’t going out and spending much. On top of that, many foreign economies are slowing down, which puts pressure on the U.S.

The question going forward is whether we’re just in a blip or a bigger shift is taking place.

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