Is a recession coming? While no one can know for sure — there are some tell-tale signs to watch out for. And one of those signs is consumer -spending habits. We chatted with two financial experts about .
Wealthy people know the best money secrets. . A recession is defined as a slowdown in economic productivity, increased unemployment and lessened consumer spending.
An economic recession is, as defined by a country’s Gross Domestic Product (GDP), at least two consecutive quarters of negative economic growth. In the U.S.
, this means that the economy isn’t growing year-over-year, underperforming the previous year’s output. As part of a recession, there are also usually large layoffs that end up making the news, as well as declining business revenues — as consumers are simply trying to save money, or don’t have extra money to spend. Recessions often come with tell-tale signs that the economy is stressed.
Here are a few recession indicators to watch out for: Lower Gross Domestic Product (GDP) The Gross Domestic Product measures the output of an entire economy. When the GDP slows down or is negative year-over-year — this could indicate a recession is near. And the definition of an economic recession is two quarters of reported negative GDP — so keeping an eye on this number can help.
Higher Unemployment When unemployment rises — this can mean that businesses are stressed financially. An uptick in unemployment several months in a row can indicate that a recession i.