As the Index of Leading Economic Indicators fell in October, it has sparked concerns about a possible recession on the horizon. However, despite this setback, consumer spending has remained much stronger than expected and may be preventing us from entering into a recession.
According to Justyna Zabinska-La Monica at The Conference Board, one of the reasons we are not currently in a recession is because consumer spending has remained much stronger than anticipated. While Zabinska-La Monica still predicts a recession early next year, she expects it to be short-lived as there hasn’t been any significant decline in manufacturing or the housing market.
U.S economist Matthew Martin at Oxford Economics no longer predicts a recession for this month. Instead, he believes that unemployment will increase and labor conditions will begin to soften but is now more likely to result in a soft landing. He added that he is open to updating his forecasts if economic data continues to surprise him.
In light of these changes, Marketplace remains committed to providing accurate and accessible news that keeps people informed about the latest economic developments. To continue doing so, we rely on financial support from our listeners who value access to reliable news sources. A small monthly donation can go a long way in helping us maintain our commitment to providing you with quality reporting on the news that matters most.
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