“The Aftermath Economy”: We have a strange economy that is a combination of continued GDP Growth, inflation we’ve not seen in 40 years, the lowest unemployment in a generation and general fears of recession all bundled together.
Dr. Brian Wesbury suggests that “It’s as if the US economy had a car accident and the emergency responders injected it with morphine. As this morphine continues to wear off – via rate hikes and smaller deficits – it is hard for us to imagine that these above normal trends will continue. In other words, a recession is in the cards.” See if you agree with his analysis from his latest one page blog post “The Aftermath Economy.” And check out his weekly “High Frequency Data Tracker.”
The Plan to Plan: As the year end approaches, many companies are planning and budgeting for 2023 and beyond. An essential first step is to properly assess “the water you swim in,” namely the economy in general and the specific markets your business serves. Many companies fail to do this at all or assume that next year will be pretty much like this year, forgetting as one pundit said, “the future is pretty much like the past, until it isn’t.”
The ITR Economics staff has a few suggestions that may make your planning more effective. Check out their blog post “Three Strategies that Won’t Pay as We Move Into 2023” Do a little pre-planning before you plan. What’s well begun is already halfway done!