Strategy in TECH...
Sales of newly constructed homes virtually collapsed in April in a double-digit decline that surprised economists and added to the growing evidence that the housing market is entering a downturn. This downturn in housing adds to growing concerns of a recession, as it comes on the heels of the tech industry decline, and new retailer warnings of slackening demand and supply chain driven cost increases.
Here we go again! Yet another major blow has been dealt to the supply chain, this time from another round of COVID-19 hitting China, forcing lockdowns in many critical areas of the country – including Shenzhen. You may or may not know that much of the electronics goods manufactured in China come out of the Shenzhen region – so we all have a direct connection to the impact of this development. Add to this, new reports of container costs rising again and transportation disruptions from the Russian invasion of Ukraine. What’s next?
In a survey by the National Association of Business Economists, a strong majority of all businesses – fully 58% – reported that they raised the wages they paid to employees in the third quarter, as reported by AXIOS. Nearly the same number say they will raise wages yet again in the coming months. While the news has some positive elements, especially for workers (like the smiling employees above), it definitely has some economists worried.
A new survey by a business economics organization reveals that nearly 8 out of 10 economists (77%) say there will be a recession in the U.S. by 2021. A majority or 52% of them suggest that a recession will take place by the end of 2020. Yet even so, a majority of these economists anticipate that the Federal Reserve Board will continue to raise interest rates yet this year.
