Are We in a Recession Right Now?
Published 8:30 am Sunday, August 14, 2022
The following quote can be attributed to U.S. Chamber of Commerce Chief Economist, Curtis Durbay:
“Whether we are technically in a recession is a more difficult question to answer than usual. In normal times, if the economy is contracting, [other] important economic indicators are falling, too. However, we are not in normal economic times, so the typical pattern may not hold. In fact, income growth has been steady, job gains consistent, job openings are at record levels, [and] consumers continue to spend. It would be difficult to call a period where this continues a recession, even if the economy meets the technical definition of one.
Businesses should plan ahead for brighter days. Inflation will come down and conditions will feel more like normal, probably within a few years. At that point, the economy is poised to grow strongly. It would be helpful to be ready to enjoy that coming boom period so as not to miss out on it at the beginning.”
Bottom line: While we cannot yet establish whether we’re truly in a recession, the risks are increasing and small businesses will want to prepare either way. Therefore, the U.S. Chamber of Commerce—CO compiled a Small Business Recession Guide with helpful resources. Click here to view the guide.