As the world’s economy is still recovering from the COVID-19 pandemic shutdowns, supply chain issues, labour shortages, and higher consumer demands, inflation rates grew to 9.1% in June 2022.

Soaring prices for everything from gasoline and groceries to electronics are taking a toll not just on consumers but also small businesses across the nation are also dealing with the economic impact.

A recent survey from Goldman showed that 93% of small business owners are worried about the U.S. entering a recession in the next six months. But, not everything is doom and gloom in the survey: 65% of business owners said they remained optimistic about prospects for their businesses, and 65% of respondents said they were currently hiring full or part-time employees.

There are many differing opinions on whether the U.S. economy is currently in a recession. Some economists say that the U.S. economy will go into a recession in the second part of the year and into 2023 based on historical factors, such as negative GDP numbers for two quarters in a row, high inflation rates and Federal Reserve rate hikes. Others say the job market and consumer confidence are strong, and we are not in a recession.

The U.S. Chamber of Commerce can’t say with certainty if the nation is facing a recession because other economic factors, such as job growth, income growth, consumer spending and manufacturing output, are booming. However, they recommend that small business owners monitor economic activity and prepare for economic downturns.

Nearly 90% of small business owners say current economic trends, including inflation, ongoing supply-chain snarls and staffing challenges, are hampering how they operate. With this Global tech companies including Alphabet, Apple, Meta and Microsoft have said they plan to reduce spending or slow hiring in order to cut costs.

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