McDonald’s CEO Chris Kempczinski says forecasts show a “mild to moderate recession” in the US © Michaela Rehle/Reuters
Economic Focal UPS said a “mild recession” is now its base scenario, putting it in the category of growing companies whose executives forecast a slowdown in 2023.
“We expect 2023 to be a bumpy year due to rising interest rates, multi-decade high inflation, recession forecasts, wars in Eastern Europe, [Covid-19] UPS CFO Brian Newman told analysts Tuesday.
“We anticipate a mild recession in the first half, with a moderate recovery in the second half,” Newman continued.
Investors appear to have heeded the warning, as UPS forecasts revenue and operating margin for fiscal 2023 to be lower than it was last year. Shares of the company – considered an indicator of global demand given the wide range of items the company ships around the world – were up 4.5% in afternoon trading.
McDonald’s CEO Chris Kempczinski on Tuesday reiterated remarks from three months ago and said forecasts suggest “a mild to moderate recession” in the US and a recession that will be “deeper”. and a little longer” in Europe.
Recession risk is a concern for those in the US housing industry, with higher interest rates already weighing on mortgage rates and weakening demand.
“The people who build houses are optimists by nature, and I want to believe that [Federal Reserve] Ryan Marshall, chief executive officer of homebuilder PulteGroup, told analysts on a call Tuesday.
