The New York Times reported that, despite the current recession, both the job market and consumer spending rose in April and May 2023. According to Labor Department reports, payrolls rose by 339,000 in May and the S&P 500 index rose more than 1.4%. President Biden put out a statement saying, “today is a good day for the American economy and American workers.”
Similarly, the Commerce Department reported a 0.8% increase of consumer spending in April, following a two-month slowing in spending. The Federal Reserve remains cautiously optimistic, stating the need to balance between considerable spending rates contributing to inflation and slowing in spending leading to a recession. With a drop in household savings that built up during the pandemic and signals that companies are drawing back on hiring, it’s unclear for how much longer consumers will support the recovering economy. Many business owners remain positive that, by the end of 2023, their business will have picked up to pre-pandemic numbers.