human
I've been hearing a lot about how the economy is doing. What are the signs of an economic downturn?
assistant
The first sign of an economic downturn is when unemployment rises. When people lose their jobs, they have less money to spend on goods and services, which can lead to businesses closing and layoffs. 2 Another sign is a decrease in consumer spending. People may be reluctant to buy big-ticket items like cars and houses if they're worried about losing their job. 3 A third sign is a decline in business investments. Businesses will cut back on capital spending if they're uncertain about the future. 4 A fourth sign is a rise in bankruptcies. This could indicate that people are having trouble paying off debt, such as credit cards or car loans.