Helena Lyng Blak
30 weeks ago

Recession talk receding

One financial analyst argues that recessions seem to be fewer and farther between.
The cubes form the words Recover or Recession.
Prazis Images / Shutterstock.com

Talk of recession is becoming much less frequent in corporate America, CNBC reports.

“Recessions are getting shorter and shorter and also rarer,” financial analyst Andreas Steno states. 

He goes on to explain, “The simple reason why recessions are fewer, is that we have shifted the composition of the economy away from cyclical sectors such as agriculture and Manufacturing towards Services, which is stickier in nature.”

“It also means that the Manufacturing sector has weakened significantly as a recession bellwether, but yet all recession models are still heavily biased by the Manufacturing momentum, since it is cyclical and easier to forecast.”

According to CNBC, the word “recession” came up on 47 S&P 500-companies’ earning calls in the fourth quarter. And that is the lowest that number has been since 2021. 

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