The American economy has a long way to go before it even comes close to being out of the woods.
Right now, some of the biggest threats to economic prosperity in America are inflation, skyrocketing interest ratings, and higher gas prices. Many people simply cannot keep up with the growing living costs.
The impacts of all these economic problems are being felt as markets become more volatile and economists’ predictions get grimmer.
According to The Blaze, problems within the trucking industry could be a sign of more economic hardship to come.
A Real Blow to the US Trucking Industry
At this point in time, demand for truckers to ship all sorts of products has seen a noticeable decline since March. From home supplies to food and more, fewer people are looking for truckers to deliver goods.
Part of what’s driving this new turn is believed to be the costs of diesel fuel.
On top of this, individual truckers are now paying double and triple the amount of money just to operate. Needless to say, this type of downturn isn’t sustainable for truckers, nor is it a positive sign for America’s larger economy.
Historically, issues of this nature with the trucking industry have been known to be followed by recessions in the US economy. The reasoning for this is quite simple.
Fewer purchases lead to fewer goods being shipped. In turn, the demand for truckers’ services declines. In addition to this, fewer purchases signal stagnation in the US economy altogether. Unfortunately, that pattern ties back in with inflation and fewer folks being able to afford rising prices.
If things continue as they’ve been, some trucking companies on the smaller side may not make it. This will only add to the negative domino effect of the economy by pushing more folks into joblessness and devastating a critical industry.
Another Sign of a Potential Recession
Unfortunately, problems with the trucking industry are far from the sole indicator of an economic recession.
Back in March, the Federal Reserve took the liberty of raising interest rates to decrease inflation. However, this was followed by economists stating that a recession could stem from this decision as well.
The Federal Reserve has been adamant that higher interest rates won’t bring the economy to its knees; though, at this point, it’s getting harder to be sure of that.
At the end of the day, if things don’t turn around quickly, the trajectory of the economy is going to keep getting worse.