Risk of recession

The expectation of recession trade does not come out of nowhere, but is looming. Even for US, the strongest economy, its economic data are slipping heavily. After inflation adjustment, US May consumer spending was down by 0.4% on month, the first drop in 2022. May after-tax income dropped by 0.1%, indicating income growth lagged behind price rise. Apr US personal savings rate declined to new low in more than a decade, indicating savings are being consumed.

Besides from US, global economy is at risk. It can be seen that US and European economic data are weakening, while other countries could be in a more dire situation.