Business sees no risk of recession in the U. S.
2023.01.23 03:40
Business sees no risk of recession in the U. S.
By Kristina Sobol
Budrigannews.com – A survey on business conditions that was released on Monday found that the likelihood that the United States will enter or remain in a recession this year has decreased from nearly two-thirds to 56% over the past three months.
The National Association of Business Economics (NABE) conducted a survey and found that 53% of respondents expected the United States to enter a recession within the next year, while 3% thought the country was already in one.
64% of respondents to the NABE’s previous poll, which was released in October, stated that the U.S. economy was either already experiencing a recession or had a greater-than-even likelihood of experiencing one in the upcoming year.
The most recent survey was conducted from January 4 to 11, and 60 NABE members who work for private-sector businesses or industry trade associations participated.
A forward-looking gauge of prices charged dropped by 10 percentage points since the previous survey to its lowest reading since October 2020, according to the poll, indicating that respondents expected inflation to ease within their businesses and industries.
At its meeting from January 31 to February, the Federal Reserve is expected to raise interest rates by a quarter of a percentage point. 1 policy meeting as it gets closer to the end of its cycle of raising interest rates now that high inflation is on the decline.
In an effort to contain inflation, which was at 40-year highs, the U.S. central bank raised rates the previous year at the quickest rate since the early 1980s. Using the preferred measure used by the Fed, inflation remains nearly three times higher than the 2% goal set by the central bank.
Consumer and producer prices, profits, and wage growth have all slowed, raising hopes that inflation can be contained without triggering a recession, according to recent economic data.
