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Plans to ‘Fix the Damn Roads’ May Help U.S. Hold Off Recession

  • States and cities gave expansion biggest tailwind in two years
  • Tax revenues for states soared 8.8% in the first half of 2018
General Views Of Duluth

Photographer: Ariana Lindquist/Bloomberg

Minnesota leaders are starting work on a $2 billion light rail project, the state’s largest infrastructure project -- and the kind of spending that may help keep recession risk at bay.

Spending by cities and states is a bright spot that could help to extend the expansion, now in its 10th year and within months of becoming the longest ever. Economists see it helping to offset other drag from the trade war, slowing global growth and a fading boost from federal fiscal stimulus and the effects of the longest government shutdown in U.S. history.