Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Business recession push back

Consumer spending remains high despite recession worries and rising inflation. (Photo by Gary Hershorn/Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

Mar 8, 2023

Pushing Back Recession Predictions … Again

For the last two years, economists have been predicting a recession in the U.S., yet their estimates seem to be perpetually six months away. 

Key Details

  • Consumer spending remains high, and the job market remains favorable, repeatedly pushing back the predicted recession. 
  • The Federal Reserve has repeatedly raised interest rates in an attempt to curb soaring inflation, but the tight labor market and consumer spending thwart these attempts. 
  • While prices have continued to rise, more consumers have savings to fall back on. 
  • Additionally, goods susceptible to high interest rates—such as homes and vehicles—are still affected by supply and labor shortages.
  • With these rate-sensitive items in short supply, Americans are instead spending their funds on areas they would typically avoid—live entertainment, dining out, and travel, The Wall Street Journal reports. 

Why it’s news

At the beginning of this year, many economists predicted that a recession would occur by midyear. While some still hold to this forecast, many think interest rates will climb much higher, and the economy will take much longer to cool. 

It seems that every six months, economists predict a recession will hit in the next six months. However, several factors make determining the actual nature of the economy more complex. 

Pandemic lockdowns were largely unprecedented in American life, and their effects are still felt throughout the economy. During 2020, the government kept interest rates at low levels, which resulted in a booming economy and stronger businesses and household financial situations, The Washington Post reports. 

While the average American had more savings in their account, businesses could also secure loans at lower interest rates, helping them grow.

At the same time, material shortages have made housing and vehicles more resilient to the current interest rates. In a bid to incentivize buyers, many sellers are using mortgage buydowns and other perks to convince buyers to make a sale final. On the other hand, existing home sales struggle as few homeowners want to give up the low interest rate on their current mortgage. 

Typically in times of high interest rates, home builders lay off crews as fewer buyers make purchases. However, home construction companies fell behind when materials were scarce and are currently playing catch-up with the market. 

Consumers themselves also play a role in the still-hot economy. Many have continued spending after the pandemic locked most indoors. Consumers are eager to pay for experiences such as travel and in-person restaurant dining. 

During a recession, these are the sectors that are frequently hit first, as this is where consumers will often cut back spending initially. Though cutting back on dining out and vacationing is the easiest way for consumers to save money, it looks like Americans aren’t ready to stop spending quite yet. 

Home / News / Pushing Back Recession Predictions … Again
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com