Letters to the Editor
-
My Own Personal Economic Indicators …
I’ve mentioned this before, but I’ve got my own personal little indicators that the economy is heading for a recession.
During Christmas 06 my company received about a dozen boxes of chocolates, a couple of those Hillshire Farm sample packs, two bottles of wine and other assorted gifts from our vendors for Christmas. During Christmas 07 our vendors sent us cards. We got only two boxes of chocolates. During phones conversations with my counterparts at other companies I heard constant stories or trimmed back or cancelled Christmas and Holiday parties. And of seriously reduced or eliminated bonuses.
Companies are tightening their belts. Raw material costs are going through the roof (particularly metals). Almost everybody is tacking on ‘fuel surcharges’ or increasing their existing ones. Our margins are either shrinking or gone. Mid-level manufactures are getting squeezed. We’ve had two layoffs in the last 14 months (nearly a third of our workforce) and things are not looking real good for the next three months (I’m safe unless the home office decides to close the doors permanently).
On top of that, inflation is starting to take hold. Food costs are getting higher (It feels like I’m spending 4-5 percent more each week than I did a year ago). And of course there are gas prices. Funny how those two items which affect everybody so directly are always removed from the ‘core’ inflation statistics.
Out here in the real world it feels like we’ve been in a recession for at least six months.