COLUMBUS, Ga. (WRBL) — National economic indicators suggest the U.S. may be nearing another slowdown, with Moody’s Analytics reporting that 22 states — including Georgia — are either already in recession or on the verge of entering one.
Economists say the most important factor shaping how deep a recession becomes isn’t just the numbers, but consumer confidence.
“A recession is technically a decline in GDP for two consecutive quarters,” said Dr. Fady Mansour, associate professor of economics at Columbus State University and director of the Butler Center for Research and Economic Development. “The biggest and most important factor during a recession is confidence. This is what makes people slow down spending and businesses slow down investments.”
When consumers pull back, demand falls, hiring slows and businesses become more cautious — creating a ripple effect that can worsen economic conditions…