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| • | Turbulent times. Some financial experts are warning that the US economy could plunge into a recession in the next year, despite the current strength of the job market and robust consumer demand. Economists are worried about rising costs to borrowers, which they fear could lead to a sudden decrease in spending. The increasing cost of gas and commodities from the war in Ukraine and supply chain issues related to the COVID-19 pandemic have increased anxieties over a potential downturn. [WaPo] | | | | • | Prices climb higher. Annual inflation ticked down slightly in April, but other key measures remained worrisome. The consumer price index increased at a brisk 8.3% in April. Core inflation—which policy makers consider an important barometer that helps to predict where inflation is headed—increased 0.6% in April, a speedier pace than its 0.3% increase in March. Services prices are also rising, as industries offer higher wages in response to shortages of workers. [NYT] | | | | • | Mounting pessimism. Many Americans consider economic opportunity to be increasingly out of reach, despite rising wages, a sizable pick of jobs, and a low unemployment rate, according to McKinsey’s American Opportunity Survey. Across nearly every demographic group, Americans are more pessimistic than they were in two surveys from 2021. In March–April 2022, optimism dipped 5% lower when compared with a survey from six months ago and 3% lower than in a survey conducted a year ago. | | | | • | Dwindling opportunities. More Americans reported having fewer economic opportunities than they did a year ago and said they expect even fewer opportunities in a year and five years from now. However, there were also bright spots: younger people (aged 25 to 34) had the most positive outlook of all age groups. Among these respondents, optimism was higher across all racial and ethnic groups, and highest among college graduates, higher-income earners, and those living in urban areas. | | | | — Edited by Katrina Parker | | This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. | | You received this email because you subscribed to the On Point newsletter. | | | | Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007 | | | |
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