(Reuters) - Several U.S. companies are expecting an economic downturn by the end of 2023, prompting their top executives to make recession a key topic of discussion during quarterly earnings calls.
Inflation as indicated by the personal consumption expenditures price index, the U.S. Federal Reserve's preferred measure, recorded its steepest increase since 1982 in June, with a 6.8% jump.
Comment
Company Executive USN
BANKS AND FINANCIAL FIRMS
Morgan CEO James Has warned that the United States may head into some
Stanley Gorman form of a recession, although it is unlikely to be deep
and dramatic.
JPMorgan CEO Jamie Never-before-seen quantitative tightening and its
Chase & Co Dimon effects on global liquidity, along with a war in
Ukraine and its harmful effect on global energy and
food prices, will likely have negative consequences on
global economy. Continues to describe challenges facing
the U.S. economy as a hurricane down the road.
Citigroup CFO Mark U.S. is in a better position to withstand a recession
Mason due to relatively strong consumer spending and a tight
labor market.
Goldman CFO Denis Bank's outlook is for a less robust set of
Sachs Group Coleman macroeconomic variables for GDP growth.
Bank of CFO Said there was no sign of a recession in the bank's
America Alastair loan portfolio, which is on a healthy trajectory.
Borthwick There's this question of what will happen in the
future, and there's what are we seeing right now. And
what we're seeing right now, credit is in great shape.
American CFO Jeffery AmEx executives are optimistic about the outlook for
Express Co Campbell consumer spending in a potential economic downturn even
as Campbell said he expected a recession without being
clear on a timeline.
There will be a recession at some point. I don't know
when. But the thing about recessions is they're always
followed by a recovery.
Visa Inc CEO Alfred I think everybody is out there wondering whether we're
Kelly going to or not going to face a recession. We're
certainly undeniably in a high inflation environment
right now.
CONSUMER FIRMS AND RESTAURANTS
Hasbro Inc CEO We came into the year feeling like there is a mix of
Christian headwinds and tailwinds for the consumer. But we were
Cocks very cognizant of the inflationary environment we were
operating in, both from a consumer takeaway as well as
its impact on our supply chain.
McDonald's CEO Over the last 6 months, the macro uncertainty has only
Corp Christopher increased ... this is contributing to weak consumer
Kempczinski sentiment around the world and the possibility of a
global recession. We're planning for a wider range of
scenarios.
Coca-Cola Co CEO James Will further raise prices in markets where costs are on
Quincey the rise. Preparing for an economic downturn, with
investments in smaller and cheaper packaging. However,
the company's products have historically been among the
last to see a demand slowdown during recessions.
RETAILERS
Amazon.com CFO Brian The company is questioning its hiring plans
Inc Olsavsky and likely will not hire at the same pace as in
previous years.
Best Buy Co CFO Matt As we contemplate the back half of the year, based on
Inc Bilunas the ongoing uncertainty as it relates to macro-economic
conditions and consumer electronics demand, it is
difficult to assess the duration of the softer sales
environment and the impact on our business.
Walmart Inc CEO Doug The increasing levels of food and fuel inflation are
McMillon affecting how customers spend ... apparel in Walmart
U.S. is requiring more markdown dollars. We're now
anticipating more pressure on general merchandise in
the back half.
BIG TECH FIRMS
Meta CEO Mark We seem to have entered an economic downturn that will
Platforms Zuckerberg have a broad impact on the digital advertising
Inc business.
Apple Inc CFO Luca Though macroeconomic indicators around the world are
Maestri turning negative, there has been no slowdown in demand
for iPhones.
MANUFACTURING COMPANIES
Boeing Co CEO David While we understand the sort of recession fears that
Calhoun are growing out there, so far, it has not impacted the
aviation industry or our customers.
General CFO Paul There's a level of recession across the board. I think
Motors Co Jacobson as we model out the recession, then we've got to figure
out what happens to commodities, what happens to
logistics, et cetera.
3M Company CEO Michael We manage into recessions and through any kind of
Roman slowdown with a broad-based approach. And we'll do
what's needed given the economic condition.
Ford Motor CFO John Says three years of pent-up demand and a strong product
Co Lawler line-up can help the company navigate a potential
downturn.
HEALTHCARE COMPANIES
Abbott CEO Robert Most economic indicators are pointing to an increased
Laboratories Ford risk of recession. In such a macroeconomic environment,
health care has proven to be pretty resilient.
(Reporting by Manya Saini, Praveen Paramasivam, Manas Mishra, Shivansh Tiwary, and Tiyashi Datta in Bengaluru; Editing by Sweta Singh and Anil D'Silva)