While interest rates have hit the highest level in more than two decades, a situation ordinarily accompanied by higher unemployment and a consumption pullback, it has not been the case this time. 'Value of talent'Low unemployment, wage growth and hiring have underpinned consumers' willingness to spend. Purchasing powerAmericans are snagging jobs and wage increases, while annual real wage growth has been positive since May 2023, said ZipRecruiter chief economist Julia Pollak. This "allowed corporations to issue debt at very low interest rates," North said, adding that many companies did just that. But the outlook this year remains positive with interest rate cuts on the horizon as inflation has fallen — a development that generally spurs business activity.

Source: Manila Times February 16, 2024 04:11 UTC