Sailing into, and through, bad economic weather

The U.S. economy is much like a ship at sea: businesses typically take advantage of fair economic weather to hire more employees; to spend more on expansion, salaries, benefits, charitable contributions – a long list of business activity-driven benefits.

However, when red morning skies are on the horizon, corporate ship captains usually must heed the warning by battening down the business hatches through reducing staff, cutting back on expansion plans, hiring fewer employees, and smaller – or no – raises or benefits increases.

Based on two major surveys that have been released in the last several months, businesses are expecting rough seas ahead, which means passengers on the U.S. economic ship should themselves be preparing – and making the right financial decisions – for high waves and rough weather. 

The Business Roundtable’s (BR) Third Quarter survey of its member CEOs concerned their plans over the next six months for hiring, capital spending, and expectations for sales. What the surveyed showed is that plans had declined in each of those areas.

Here's how the BR described CEO survey response: "This quarter’s decline reflects a continued reduction in CEO expectations and plans for the next six months. The results are consistent with domestic economic conditions, including high inflation and higher interest rates, and persistent global headwinds from the war in Ukraine, including elevated global energy prices and the unfolding energy crisis in Europe.”