A survey by NYSE-listed Stifel Financial shows that most executives are bracing for a recession in the U.S. In addition, “53% of respondents believe that inflation will be an issue for the next two quarters to a year.”
Most Executives Surveyed Say Recession Cannot Be Avoided
Stifel Financial Corp. (NYSE: SF) announced the results of a survey it conducted on the state of the U.S. economy last week. The St. Louis-headquartered financial services company surveyed 70 corporate executives, business owners, and private equity investors between July 18 and Aug. 5. According to the company:
Nearly all respondents believe the U.S. economy is either already in a recession (18%) or will face one within the next 18 months (79%).
Noting that 3% think the U.S. economy will avoid a recession entirely, the firm added that “Inflation and the tight U.S. labor market represent the two biggest perceived threats to business today.”
Moreover, “53% of respondents believe that inflation will be an issue for the next two quarters to a year, with another 43% expecting elevated prices to persist for even longer,” the financial services firm detailed.
Meanwhile, half of the survey respondents are “very concerned” about inflation, Stifel stressed, elaborating:
An overwhelming majority (81%) are primarily passing rising costs on to consumers instead of absorbing costs in profit margins, cutting overhead, or changing suppliers.
Many analysts, economists, and executives have shared their thoughts on whether the U.S. economy will be in a recession.
Last week, JPMorgan CEO Jamie Dimon warned that “something worse” than a recession could be coming. Tesla CEO Elon Musk recently said that inflation has peaked but we will have a recession that could last about 18 months. Bank of America has predicted that the U.S. will slide into a recession this year.
President Joe Biden said earlier this month that the U.S. economy had zero inflation in July. His statement followed an attempt by his administration to redefine the technical definition of a recession.
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