As it enters a recession, the American economy is losing the confidence of small businesses in it

Washington-Sana

With the US economy heading towards more recession due to inflation pressures and high interest rates, the confidence of small companies in their country's economy has declined amid expectations that economic conditions in the United States will worsen next year, according to the American Wall Street Journal.

The newspaper pointed out in a report that the owners of companies and small businesses have lost their confidence in the American economy with the deterioration of expectations of improving working conditions, high inflation, disruption of supply chains and lack of employment, which cast a heavy shadow on the future of these companies and the possibility of their continuation in the near future.

The newspaper pointed to a survey of more than 600 small businesses conducted by the business consultancy firm Vestige, which showed that 57 percent of the owners of these companies expect worse economic conditions in the United States next year, and that the proportion of small companies that expect to increase revenues in 2023 fell to 61 percent, compared to 79 percent In May 2020.

The US economy is showing signs of stress under pressure from the highest inflation rates for decades and the rise in interest rates, which raises the risks of an economic downturn.. Investors also notice a significant decline in the stock market, which reinforces fears of negative effects on growth.

In turn, the American magazine Forbes referred to the great economic crisis that the United States is witnessing and said: Despite economists' expectations of a growth of 1 percent, the American economy shrank at an annual rate of 1.4 percent in the first quarter of this year, while inflation rose by 6.6 percent compared to March. 2021, which is the highest annual increase in the past 40 years.

At a time when American families are bearing the effects of rising fuel and food prices to record levels and are beginning to suffer under debt pressure to make ends meet, US President Joe Biden admitted yesterday that the United States is facing “economic headwinds” and that his decision to release millions of barrels of oil from US reserves to boost The supply was not enough to bring down prices, which have hit record levels in recent days.

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