Official U.K. numbers show that the nation is in a recession. Gross domestic product (GDP) fell by 0.3% in the final quarter of 2023 after falling by 0.1% in the third quarter of 2023. Recessions are typically defined as two consecutive quarters of negative growth. The decline was widespread and affected the manufacturing, construction, and wholesaling sectors. Tourism partially offset some of the decline in addition to a slight increase in vehicle and machinery rentals.
Tag: recession
The Worst of Inflation Could Be Behind Us. A Recession May Not Be (Macro News for December 30, 2023 – January 5, 2024)
Pundits and experts thought that high inflation would push the U.S. into recession in 2023. The Federal Reserve's aggressive contractionary monetary policy and belt tightening by many firms resulted in layoffs, but still did not result in the expected recession. Fed chair Jerome Powell remains noncommittal and stated in December 2023 that the economy appears strong, but an economic shock could result in a 2024 recession.
McCarthy’s Debt Deal Avoids Default but May Worsen Recession (Macro News for June 3, 2023 – June 9, 2023)
Republicans and Democrats finally reached an agreement to increase the debt ceiling and keep the U.S. from defaulting on its debt. While the immediate financial crisis has been averted, many economists believe the slower spending demanded by House Speaker Kevin McCarthy and agreed to by President Biden that is embedded in the deal will make the expected recession worse.
Why Current U.S. Recession Warnings are Unlike All the Others (Micro News for May 13, 2023 – May 19, 2023)
Many economists and business experts continue to forecast a recession in the latter part of 2023. Primary drivers include higher interest rates, tighter credit policies, and the uncertainty surrounding the banking crisis. The Federal Reserve increased interest rates faster and higher than any time in recent history to combat inflation that almost entered double digit territory in mid-2022.
Pearson Economic News 