SALT LAKE CITY — The U.S. economy plunged for the second consecutive quarter, as gross domestic product (GDP) fell 0.9% between April and June.
Colby Ostler is the owner and manager of “Over The Coles BBQ”.
“It’s been a lot tougher in the last four months than maybe seven months ago,” Ostler said.
He says the current state of the economy has impacted his business as a whole, including his food truck.
“This thing burns about five miles per gallon, so you do the math, it’s pretty expensive, especially driving maybe 30 miles round trip,” Ostler said.
The negative turn in GDP, which is the total value of goods produced and services provided in a country, has some Utahans worried about a possible recession.
Phil Dean, chief economist at the Kem C. Gardner Policy Institute, said we last experienced a two-month recession in 2020.
“It’s kind of a historical rule of thumb, that two consecutive quarters of negative real GDP, which means inflation-adjusted GDP is a recession because in all previous recessions it’s happened,” he said. said Dean.
Inflation currently stands at 9.1% nationally and nearly 10% in the mountain region, according to Dean. He was quick to point out that the economy, at the moment, is sending mixed signals.
“Labour markets are still very strong, lots of job opportunities, the unemployment rate is very low here in Utah, where the 2% unemployment rate is probably below a healthy level for the unemployment rate “, Dean said.
Dean explained that it is good for people to be prepared financially, whether we are in strong economic times or heading into a recession.
“Take care of your needs, think about what we want more than what we need, make sure you have savings you can draw on if you need them,” Dean said.
Whether it’s his food truck or his restaurant, Ostler says he plans to continue through these uncertain times.
“We’re just going to get through this, we’re not going to raise prices, we’re just going to stay tight,” Ostler said.