The US economy is in a precarious state at the moment. In September 2022, for example, US inflation jumped by 8.2% compared to the same period a year earlier. Meanwhile, the price of food, energy and housing have all increased significantly, putting tremendous financial pressure on both businesses and consumers.
Unfortunately, it doesn’t look like things will turn around any time soon. In October, Goldman Sachs Chief Executive Officer David Solomon told Reuters that the US could be headed in the direction of a recession in 2023. Solomon also talked about the challenges facing private equity buyers, referencing how deal activity in the buyout sector has already slowed. In fact, data from Dealogic revealed that a steep fall in large private-equity buyouts contributed to the slowdown in global dealmaking, with third quarter activity dropping 54% to $716.62 billion from $1.56 trillion in the same period last year. Given that funding may be a necessity for businesses trying to stay afloat and survive this predicted recession, this is certainly worrying for businesses.
As you plan for 2023 and put into place the necessary processes, people and technologies to weather the recession, there are certain trends you should be mindful of, including: inflation and the economic downturn, supply chain stability and resiliency, increasing customer expectations, accelerated digital transformation, the war for talent and sustainability.