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 and wages decrease. This can be seen in countries around the world, including the United States. 2 Another indicator of an economic downturn is a decline in business investments. If businesses are not investing in new technologies or equipment, this could be a sign that they are expecting economic conditions to worsen. 3 A third indicator of an economic downturn is a rise in bankruptcies. When people cannot pay their debts, it can lead to bankruptcy. 4 Finally, rising interest rates can indicate an economic downturn. Interest rates are typically low during times of economic growth, but as economies slow, interest rates tend to increase.