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Most sectors of the economy are showing signs of a pending recession even as the labor market stays hot, Stifel’s chief economist says


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  • The economy is showing signs of a recession despite a hot labor market, Stifel’s chief economist says. 
  • Lindsey Piegza told Bloomberg TV on Monday that the labor market is holding up but also starting to show some weakness. 
  • She added that she expects a recession in 2023. 

The economy is showing signs of a looming recession despite the labor market remaining strong, according to Stifel chief economist Lindsey Piegza.

In an interview with Bloomberg TV on Monday, Piegza cautioned that although the red-hot labor market has held up well amid the Federal Reserve’s tightening regime this year, it too is starting to show signs of weakness. 

“I think that we can argue you can check the recessionary box for nearly every sector of the economy even at this point, except for the labor market,” Piegza said. “But even there we’re starting to see cracks, we’re starting to see signs of emerging weakness.”

Piegza said Stifel overal remains positive through the end of the year, but expects a recession in 2023. Her comments come ahead of the latest consumer price index report due out Tuesday. 

She also questioned whether consumers would remain resilient into next year, citing persistent inflation and lower incomes coupled with pressure in the housing market and declining manufacturing activity. 

 

Read the original article on Business Insider