In the third quarter of 2022, executives from the largest technology, retail, and consumer corporations have released reports and answers addressing the state of the economy, which has been facing a possible recession. Much of this is due to foreign policies implemented by the Biden administration, along with retaliation from foreign governments such as the Russian and Chinese. While profits and results varied between different industries, a general pattern amongst companies’ results was a decline in spending and increases in product prices.
While large tech companies such as Google and Apple typically perform well, executives reported consumers spending money at slower rates and less productivity than previous years. Other companies including Procter & Gamble, Walmart, and Best Buy also reported lower sales rates and an expectation for a tougher 2023.
However, the United States economy is still in a peculiar spot: people are still spending money, but much of it is pouring towards gas and groceries due to an inflation in prices. Unemployment rates are rather low, although some companies, such as Google and Shopify, are slowing hiring rates and have begun to lay off workers. Google CEO Sundar Pichai stated that the company’s “sunnier days” were over, and that hirings would be slowed going into 2023. Shopify reported that ten percent of its workforce, or 700 employees, would be fired due to a decline in online shopping.
Other companies shared mixed sentiments, with a confusing mix of positive and negative results. Coronavirus vaccine company Pfizer demolished expectations and had a positive quarter, while General Motors and UPS fell after shortages in automotive parts and parcels, respectively.
As for peoples’ reactions to the news? Small-business owner Thomas Combs has entirely changed his lifestyle after the inflation. He has had to cut back on treats, along with recognizing the increasing struggle to upgrade his car or house. Others, such as Shannon Villa, a 32-year-old Amazon worker, has learned to adapt to the situation. “I can’t control the price of eggs or milk. [If] it goes up it just goes up. I still need it for family. … I can’t afford to complain. I just got to adjust.”
While large tech companies such as Google and Apple typically perform well, executives reported consumers spending money at slower rates and less productivity than previous years. Other companies including Procter & Gamble, Walmart, and Best Buy also reported lower sales rates and an expectation for a tougher 2023.
However, the United States economy is still in a peculiar spot: people are still spending money, but much of it is pouring towards gas and groceries due to an inflation in prices. Unemployment rates are rather low, although some companies, such as Google and Shopify, are slowing hiring rates and have begun to lay off workers. Google CEO Sundar Pichai stated that the company’s “sunnier days” were over, and that hirings would be slowed going into 2023. Shopify reported that ten percent of its workforce, or 700 employees, would be fired due to a decline in online shopping.
Other companies shared mixed sentiments, with a confusing mix of positive and negative results. Coronavirus vaccine company Pfizer demolished expectations and had a positive quarter, while General Motors and UPS fell after shortages in automotive parts and parcels, respectively.
As for peoples’ reactions to the news? Small-business owner Thomas Combs has entirely changed his lifestyle after the inflation. He has had to cut back on treats, along with recognizing the increasing struggle to upgrade his car or house. Others, such as Shannon Villa, a 32-year-old Amazon worker, has learned to adapt to the situation. “I can’t control the price of eggs or milk. [If] it goes up it just goes up. I still need it for family. … I can’t afford to complain. I just got to adjust.”
