Here’s a snapshot of what’s happening:
That’s how much the Dow Jones Industrial Average has declined this week. That index is down 7.6% in the past month and has fallen 15% since the start of the year. While having no immediate economic impact, rising stock prices let many companies raise money. They also make Americans feel wealthier.
That’s how much the U.S. central bank hiked interest rates this week. After keeping the effective benchmark rate near zero for several years, the increases since early March are being felt elsewhere in the economy.
Average 30-year fixed mortgage:
While lower than during many periods in the past, the mortgage rates on average have virtually doubled since late last year. They are the highest they’ve been since 2008, when the economy was falling into a deep recession.
That’s the average price of a gallon of unleaded gasoline in metro Atlanta, up from $4.12 a month ago. A year ago, the average price was $2.90 a gallon. While only one factor in inflation, gas prices are the most publicly visible consumer expense with the widest impact.
That’s the unemployment rate in Georgia. Hiring has continued to be robust and joblessness is at historically low levels despite the worrying economic signs.
“While Georgia’s latest employment data show a strong overall increase, there is little question that storm clouds are gathering around the broader U.S. economy. We now see a recession as being more likely than not over the next year to 18 months. The ongoing carnage in the capital markets has real world implications for Peachtree Street, as it is now more costly and difficult for firms to raise capital. The pullback is particularly notable in the tech sector, which has been a bright spot in Georgia’s economy the past few years. We expect hiring to slow over the next few months.”
-- Wells Fargo economists, in an online newsletter Thursday
“We see no real probability of recession in 2022. The second quarter is looking good. Fed policy typically takes 12 to 15 months, but the lag time may be shorter this time because of the pace of the rate hikes. Our forecast is that there’s a 15% probability of recession this year and a 40% probability in 2023 and 2024.”
-- Kurt Rankin, senior economist, PNC Financial Services Group Friday
“For now, we don’t expect an outright recession, but with our base case incorporating a slower rate of GDP growth, the risk of a recession has become elevated.”
-- Preston Caldwell, head of U.S. economics for Morningstar, in a note to investors on Thursday