Two noted economists warn that the US economy is going into another recession, as concerns about the current pandemic and the labor market worsened over the past few months.
Inflation is at 30-year highs that affect on Prices of everyday goods and supply chains. A labor shortage also affected some industries that resulted in a lot of unfinished jobs.
One of the study’s authors told the Post that we are entering a recession, adding that an early warning is always a good idea.
Sentiment among customers and workers worsens as the year gets closer to the end, even vaccination rates increase, and Covid death cases decline in the US. The economists say that things are getting better, differing sharply with the White House’s optimistic talk.
Sentiment declined so rapidly that two widely respected signs of customer feelings are flashing red. The economists warn that indicates that the US economy is in the negative territory. The same indicators were flashing red in 2008 when there was a global financial crisis.
A former member of the rate-setting committee of the Bank of England and a professor of economics at Dartmouth College, Blanchflower, and Alex Bryson from the University College London, are pointing out declining customer confidence. Blanchflower said that he predicted the 2008 recession and told The Post that he might be right this time as well. Bryson`s recent paper with Blanchflower studied customer sentiment from 1977 until now, which found that customer expectations always indicate early warnings on recession. It is another warning sign for an economy with a labor market striving to recover and increasing inflation frightening to disorganize it.
Blanchflower told The Post that retail sales would get worse soon, even though they seem to have logged better-than-expected accounts lately.
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