Cincinnati Edition: Are we heading toward a recession?

UC professor Asawari Deshmukh joins discussion about the state of the economy

With high inflation persisting, is the economy heading toward a recession?

Asawari Deshmukh, an assistant professor – educator in the University of Cincinnati’s Carl H. Lindner College of Business, was part of a Cincinnati Edition panel discussion to try to answer that question.

Asawari Deshmukh

Asawari Deshmukh, assistant professor – educator of economics at the University of Cincinnati Carl H. Lindner College of Business.

There are many factors that determine the strength of the economy. Currently there are positive signs such as strong consumer spending but also troubling signs such as high inflation.

“It’s a combination of many different things that determine whether we are heading for a recession or not,” Deshmukh said. “Typically, the start of a recession, one of the features seen is pretty high inflation, which we have seen right now. We also see a good amount of consumer demand. Although it is slowing down, it still is pretty high.”

Inflation has led to conflicting behaviors among consumers.

For some goods and services, people are scaling back their purchases because prices are rising. But for other categories, people still are spending, likely in anticipation that prices could be higher in the future.

Deshmukh said the COVID-19 pandemic also likely changed consumers’ calculations, spurring them to spend more.

“There is a sea change, in my opinion, which COVID brought about in a shift of priorities,” she said. “What do I want to do? Does it matter if I save all that money for later or should I just splurge and get it done with because I don’t know what tomorrow holds for me?”

See more from Cincinnati Edition.

Next Lives Here

The University of Cincinnati is classified as a Research 1 institution by the Carnegie Commission and is ranked in the National Science Foundation's Top-35 public research universities. UC's medical, graduate and undergraduate students and faculty investigate problems and innovate solutions with real-world impact. Next Lives Here.

Related Stories


WVXU: UC study examines hesitancy to treat childhood anxiety...

February 3, 2023

The University of Cincinnati's Jeffrey Strawn and Jeffrey Mills and Cincinnati Children's Hospital Medical Center's Angela Scott joined WVXU's Cincinnati Edition to discuss a recent study examining hesitancy to treat childhood anxiety with medication.


Strategies for Small Businesses Considering Expansion

February 3, 2023

There are so many great things about being a small business: the close-knit working environment, contributing to your local economy, seeing your vision come to life and thrive. The ultimate goal – of course – is to grow into a bigger venture, whether it means buying commercial land to build on or leasing local office space to grow into. You need to have the right small business growth strategies in place if you want your business to expand in a stable way; strategies that will set you up for long-lasting success and take your bottom line into consideration.


Family business – ‘the quiet giant’ – gets leadership voice on...

February 3, 2023

You might call family businesses in America the “Quiet Giant.” “Quiet” because up until recently, the family business sector did not have a dedicated seat at the table in Congress. “Giant” because America’s family-owned businesses are the foundation of the US economy, contributing nearly 60% of the country’s private employment, accounting for 78% of new job creation, and representing $7.7 trillion per year to GDP.

Debug Query for this