The article discusses the mild recession experienced in the first half of 2022 due to two consecutive negative quarters in GDP. Despite no official recession declaration from the NBER, economic indicators suggest persistent challenges. Significant layoffs in the tech industry and rising consumer debt contribute to concerns. Recent employment data from ADP and the Federal Reserve indicate a downturn, prompting projections of a potential recession in early 2025. Certain sectors remain robust, offering opportunities for growth and income investors, particularly high-yield dividend stocks known for performing well in economic downturns.
The last time the economy suffered two negative quarters of GDP was in early 2022, marking a mild recession despite the NBER not officially declaring it.
Concerns over tariffs affecting business expansion, coupled with rising consumer debt and significant layoffs in tech, pose real challenges to the economy.
The ADP and non-farm payroll data for February were much weaker than expected, suggesting potential recessionary conditions ahead.
Certain stock sectors are seen as recession-resistant, performing better due to consistent demand for their products and services, even during economic struggles.
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