Factbox: Recession fears creep into corporate America as growth slows

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FILE PHOTO: Traders work on the floor of the NYSE in New York

(Reuters) – Several U.S. companies are expecting an economic downturn by the end of 2023, prompting their top executives to make recession a key topic of discussion during quarterly earnings calls.

Inflation as indicated by the personal consumption expenditures price index, the U.S. Federal Reserve’s preferred measure, recorded its steepest increase since 1982 in June, with a 6.8% jump.


Company Executive USN


Morgan CEO James Has warned that the United States may head into some

Stanley Gorman form of a recession, although it is unlikely to be deep

and dramatic.

JPMorgan CEO Jamie Never-before-seen quantitative tightening and its

Chase & Co Dimon effects on global liquidity, along with a war in

Ukraine and its harmful effect on global energy and

food prices, will likely have negative consequences on

global economy. Continues to describe challenges facing

the U.S. economy as a “hurricane” down the road.

Citigroup CFO Mark U.S. is in a better position to withstand a recession

Mason due to relatively strong consumer spending and a tight

labor market.

Goldman CFO Denis Bank’s outlook is for a less robust set of

Sachs Group Coleman macroeconomic variables for GDP growth.

Bank of CFO Said there was no sign of a recession in the bank’s

America Alastair loan portfolio, which is on a healthy trajectory.

Borthwick “There’s this question of what will happen in the

future, and there’s what are we seeing right now. And

what we’re seeing right now, credit is in great shape.”

American CFO Jeffery AmEx executives are optimistic about the outlook for

Express Co Campbell consumer spending in a potential economic downturn even

as Campbell said he expected a recession without being

clear on a timeline.

“There will be a recession at some point. I don’t know

when. But the thing about recessions is they’re always

followed by a recovery.”

Visa Inc CEO Alfred “I think everybody is out there wondering whether we’re

Kelly going to or not going to face a recession. We’re

certainly undeniably in a high inflation environment

right now.”


Hasbro Inc CEO “We came into the year feeling like there is a mix of

Christian headwinds and tailwinds for the consumer. But we were

Cocks very cognizant of the inflationary environment we were

operating in, both from a consumer takeaway as well as

its impact on our supply chain.”

McDonald’s CEO “Over the last 6 months, the macro uncertainty has only

Corp Christopher increased … this is contributing to weak consumer

Kempczinski sentiment around the world and the possibility of a

global recession. We’re planning for a wider range of


Coca-Cola Co CEO James Will further raise prices in markets where costs are on

Quincey the rise. Preparing for an economic downturn, with

investments in smaller and cheaper packaging. However,

the company’s products have historically been among the

last to see a demand slowdown during recessions.


Amazon.com CFO Brian The company is questioning its hiring plans

Inc Olsavsky and likely will not hire at the same pace as in

previous years.

Best Buy Co CFO Matt “As we contemplate the back half of the year, based on

Inc Bilunas the ongoing uncertainty as it relates to macro-economic

conditions and consumer electronics demand, it is

difficult to assess the duration of the softer sales

environment and the impact on our business.”

Walmart Inc CEO Doug “The increasing levels of food and fuel inflation are

McMillon affecting how customers spend … apparel in Walmart

U.S. is requiring more markdown dollars. We’re now

anticipating more pressure on general merchandise in

the back half.”


Meta CEO Mark “We seem to have entered an economic downturn that will

Platforms Zuckerberg have a broad impact on the digital advertising

Inc business.”

Apple Inc CFO Luca Though macroeconomic indicators around the world are

Maestri turning negative, there has been no slowdown in demand

for iPhones.


Boeing Co CEO David “While we understand the sort of recession fears that

Calhoun are growing out there, so far, it has not impacted the

aviation industry or our customers.”

General CFO Paul “There’s a level of recession across the board. I think

Motors Co Jacobson as we model out the recession, then we’ve got to figure

out what happens to commodities, what happens to

logistics, et cetera.”

3M Company CEO Michael “We manage into recessions and through any kind of

Roman slowdown with a broad-based approach. And we’ll do

what’s needed given the economic condition.”

Ford Motor CFO John Says three years of pent-up demand and a strong product

Co Lawler line-up can help the company navigate a potential



Abbott CEO Robert Most economic indicators are pointing to an increased

Laboratories Ford risk of recession. In such a macroeconomic environment,

health care has proven to be pretty resilient.

(Reporting by Manya Saini, Praveen Paramasivam, Manas Mishra, Shivansh Tiwary, and Tiyashi Datta in Bengaluru; Editing by Sweta Singh and Anil D’Silva)


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