Warren Buffett's Berkshire Hathaway revealed that consumers are cutting back - and a recession could be the result
just signaled that American consumers are feeling the squeeze, and an economic slump or even a recession may be looming.
- real estate brokerage revenues fell 22% and after-tax earnings fell 60%, as transaction volumes fell and revenues from mortgage services dropped."These declines were attributable to the, including lower existing home sales and mortgage refinancing demand," Berkshire explained.- revenues tumbled 19% and pre-tax earnings fell 21%."The declines reflected," Berkshire said. Forest River's revenues fell 34% as sales volumes of recreational vehicles fell due to, it added.
However, the slowdown in Berkshire's consumer businesses may well signal a broader downturn in consumer spending across the US economy. Berkshire's challenges last quarter underline the pressures on American households, which have suffered a one-two punch of fast-rising prices and surging interest rates over the last 18 months or so. They've had to pay more for essentials like food, fuel, and shelter, and have seen the monthly cost of their credit cards, car loans, and mortgages rise too., they've tapped their pandemic savings, racked up more debt, and are stashing away less money each month.
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