How to Navigate a Slowcession
To all CFOs out there, it's important to stay up-to-date on economic trends and terminologies in order to make informed decisions. One such term that has been making headlines recently is "slowcession." A slowcession, as defined by Moody's Analytics, refers to an economic condition where a recovery from a recession is slow and sluggish, with high levels of inflation and low levels of job creation.
In a recent article by CFO Dive, the struggles of the current U.S. economy are attributed to the slowcession. The article notes that the pace of job creation is slower than expected, while inflation is at its highest in over a decade. Furthermore, supply chain disruptions, labor shortages, and rising input costs have all contributed to the overall slowdown in the economy.
As CFOs, it is important to be aware of the implications of a slowcession. Companies may need to adjust their financial forecasting and budgeting in order to account for slower growth and higher costs. Additionally, CFOs should consider diversifying their supply chains and seeking alternative sources of raw materials to mitigate the impacts of supply chain disruptions.
To bring this home, a slowcession is a sluggish economic recovery from a recession marked by elevated inflation and low job creation. As CFOs, it's important to monitor economic trends and adjust financial strategies accordingly to prepare for the potential impacts of a slowcession.