SALT LAKE CITY (ABC4) – The GDP reported a 0.9% drop, and in the second quarter we’re seeing a decrease in growth.
Here in Utah, we’ve seen inflation rates jump just under 15% in the past year, according to the U.S. Congress Joint Economic Committee.
And according to the same report, Utahns pay almost $900 more a month than they did a year ago.
Jeremy Blair, the vice president of finance at Mountain America Credit Union, said the mark of a good economy is typically 2-3% of growth, but this report was largely expected to be negative.
He said there’s a decline in government spending, consumer spending, and business spending.
“For most people that second GDP print two quarters of a row of negative GDP that translates to what most of the world considers a recession,” Blair said.
According to Blair, Utah’s economy heated up coming out of the pandemic and economic cool down might be to our benefit.
“I think there’s some silver lining to this for us, we might finally get a breather a bit of a reprieve to some of that really rapid inflation that the mountain west experience, with GDP cooling off we might see that finally take a bit of a reprieve,” Blair said.
He said the best things for Utahns to do right now is save and avoid spending in unnecessary areas.
“Maybe you drive past the restaurant instead of stopping at the restaurant once in a while maybe you cut back one or two of your subscription services. And if you save a little bit, that’s gonna help with those inflation numbers. As long as we’re not all competing on price, that contributes to bringing those prices back down,” Blair said.
He said this might mean we finally get a bit of a breather from those high inflation rates and in Utah it’s more likely we’ll see job growth than job loss