Economic Monthly Businesses Ride to the Rescue

Economic Monthly Businesses Ride to the Rescue

Tani Fukui Shan Ahmed Jason Chen
APR 12, 2024

We recommend

Relative Value & Tactical Asset Allocation Q2 2024

The Case for a U.S. Productivity Boom

We now expect the economy to avoid a recession in 2024. Businesses are emerging as a backstop. High and rising profit margins, a rebounding manufacturing sector, and a resilient services sector present the opportunity to maintain labor force expansion and, with it, consumer spending.

However, the ability of consumers to keep spending is dependent on companies’ ability to keep hiring. Until now, companies have largely succeeded. Taking a longer-term perspective, we have some concerns for ongoing consumer strength and we remain watchful for signs of weakness.