Rising inflation and looming recessions are squeezing household finances, but businesses also worry about an economic downturn. This is not just because of higher bills, but also because consumers spend less and finance from banks and investors dries up when the economy worsens.
Even strong industries such as technology feel these effects. With the Standard & Poor’s 500 stock market index down 17% in the year to date, and the Nasdaq 100 tech sector index down 33%, market uncertainties can affect a company’s ability or willingness to spend on the type of innovation that can help build strength in advance of the next downturn.
