From the most recent report – “The Washington Economy Watch is a monthly report issued by The Stephen S. Fuller Institute that is intended to inform its readers regarding the current and near-term performance of the Washington area’s economy. The Leading and Coincident Indices were first reported in February 1991 and have been calculated each month since that first release and reflect an underlying data base that dates from 1978 covering six complete business cycles in addition to the Post-COVID 19 cycle that began in May 2020.”
The outlook, and what it means to businesses and customers west of DC in the coming year?
“While the economy appears to have largely returned to its pre-pandemic growth trend by early 2022, its performance over the past six months reveals underlying weaknesses that suggest vulnerabilities as it is being impacted by negative national and global economic forces: inflation rates ranging above 8 percent, rapidly rising interest rates—30-year fixed mortgage rates above 7%, energy supply disruptions generated by the war in Ukraine, continuing tight labor markets, and slumping consumer confidence and slumping consumer spending, just to mention a few.”
The underlying sentiment and guidance appears to support our WestbyDC advice to tighten operational expenses, hold on to high-performing employees, recalibrate and relaunch brand refresh and very targeted marketing campaigns to take advantage of competitor weaknesses that surface. Quite a bit of clarity and consolidation is likely to emerge in most business sectors, with opportunities for dominant plays in market share and presence. Though not with commodity goods and services, but with offerings that reinvigorate consumer confidence.
