By ttaylor@hubspot.com (Tristen Taylor)

As we embark on the new year, marketing managers and project leads will determine their strategy for the first quarter based on the big question, “Are we in a recession?”.

Typically, a recession is considered two consecutive quarters of negative gross domestic product (GDP). The U.S. entered a recession in the Summer of 2022, but according to the Bureau of Economic Analysis, GDP actually grew slightly at 2.6% in Q3.

So while we can’t fully confirm that we’re going to be in one again, we know that your marketing team is looking to you for answers. In this article, we’ll provide industry insight into the current state of the economy and best practices for marketing leaders to better address employee concerns.

Are We in a Recession?: Marketing Leaders and Data Weigh In

To see what brands think about the current economy, we used Glimpse to survey 300+ U.S. marketers to ask them if they think we’ve entered a recession in detail.

1. Do you think the U.S. economy is in a recession?

Marketers overwhelmingly (78%) say the U.S. is currently in a recession. This comes as no surprise as many marketers are already adapting strategies in response to changing consumer spending habits. Let’s go through some of the sentiments behind their answers.

Reasons Why We Might Be in a Recession

• Consumers are spending less and exercising more caution and discretion.

People are spending less because they don’t know how long the recession will last. As a result, they pay less for products or services. They’re focusing on using their money for sustainability over risks and are spending less on nonessential goods.

• Inflation has made everything more expensive for marketers and consumers.

In plain terms, higher prices make it harder to make ends meet. Instead of shopping for the latest, innovative tech, many have to delay payments, purchases, and planning. After all, no one wants to spend money when gas and food are priced so high.

• Marketers are struggling with their budgets — and 37% have already seen budget cuts.

Consumers aren’t spending as much, and in response, many businesses’ marketing budgets are shrinking. This limits the projects marketers can conduct and impacts how many and what type of marketing activities they can do. One survey respondent even said, “We’re needing to spend more to get similar results from six months ago.”

2. Do you expect the U.S. economy to be in a recession in the next three to six months?

Most (67%) marketers expect the recession to last over six months, and one-third expect it to last more than a year if we break down the stats even further.

<img alt="glimspe recession survey question: how long do you expect the recession to last? more than six …read more

Source:: HubSpot Blog

Author: Aaron