According to a survey by NYSE-listed Stifel Financial, most executives are preparing for a US recession In addition, “53% of respondents believe inflation will be a problem for the next two quarters to a year.”
Most executives surveyed say a recession is inevitable
Stifel Financial Corp. (NYSE: SF) last week released the results of a survey it conducted on the state of the U.S. economy. The St. Louis-based financial services firm surveyed 70 business executives, business owners, and private equity investors between July 18 and August 5. According to the firm
nearly all respondents believe the U.S. economy is already in a recession (18%) or will face one within the next 18 months (79%).
Noting that 3% believe the U.S. economy will avoid recession altogether, the firm added that “inflation and a tight U.S. labor market are perceived as the two biggest threats to business today.”
Additionally, “53% of respondents believe inflation will be a problem for the next two quarters to a year, and another 43% expect price increases to continue even longer,” the financial services firm detailed.
Meanwhile, half of survey respondents are “very concerned” about inflation, Stifel elaborates.
The overwhelming majority (81%) are primarily passing on rising costs to consumers instead of absorbing costs through profit margins, reducing overheads, or changing suppliers.
Many analysts, economists, and executives have offered their thoughts on whether the U.S. economy is entering a recession.
Last week, JPMorgan CEO Jamie Dimon warned that “something worse” than a recession might be coming. Tesla CEO Elon Musk recently said that inflation has peaked but will be in a recession that will last about 18 months. Bank of America predicts that the U.S. will fall into a recession by the end of this year.
President Joe Biden said earlier this month that the U.S. economy hit zero inflation in July. His remarks follow the administration’s attempt to redefine the technical definition of a recession.
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