State of the Current U.S Economy
What is the current state of the U.S economy? Well, glad you asked. It started with the rising fuel prices, rising food costs, rising energy costs, and now rising real-estate prices. Prices are going up. And before anyone jumps in, Russia’s war in Ukraine might be affecting energy and food costs, but inflation hasn’t been this high in the last 40 years. A mix of factors are contributing to the res of a recession. After dealing with two years of the coronavirus pandemic Americans are now worried about the economy and how quickly it is declining. While some experts say a recession is looming others would argue it’s already here. Our first primary indicator is the shrinking economy in the first quarter of 2022. Technically one more quarter of negative growth and by definition, it’s a recession. Stagnant economic growth with high inflation has Americans quickly losing confidence in the U.S economy.
What Americans Are Saying
A recent gallop survey that was conducted on April 1-19th revealed that Americans today have the lowest levels of confidence in the economy. While 76% of those Americans surveyed are certain the economy will continue to get worse, 42% currently rate the economic conditions as poor, while 38% state fair. Only 2% of those surveyed indicated the economy is excellent. As inflation continues to rise heading into summer more Americans will start facing economic challenges. For the month of March consumer prices had soared 8.5% over the previous year. Food, energy, and cost of living, just about everything have skyrocketed.
What Americans Are Cutting Back On
According to a survey conducted by CNBC Momentive, Americans are cutting back mostly on driving (by 39%) and dining out (by 53%). Others are delaying or canceling major life purchases. Like buying a home, car, or taking a vacation. Should the high prices continue most survey participants indicate the need to cancel a vacation (40%), or a monthly subscription, (36%). The majority of the adults surveyed (76%) indicated the need to rethink their finical choices in the coming months. This specific survey indicated 81% of adults say the U.S economy will experience a recession in 2022. The risk of a recession is all over the world, from the U.S, Europe, and even China.
Are you feeling the financial challenges due to the current state of the economy?
Well, that all depends on where in the world you are and more.
Until next Time ~ Ayri
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