'We're struggling,' North Texans fear recession despite potential regional protection
PLANO, Texas (CBSDFW.COM) - Faced with higher prices, Goli Sabetpour of Plano said all she can do to save money is compare prices at various grocery stores.
"We are struggling. Everything is too expensive. Food, everything," Sabetpour said. "I know gas is coming down, but we don't eat gas. We eat food."
On Thursday, the U.S. Commerce Department announced the Gross Domestic Product fell by an annual rate of 0.9% between April and June.
It's the second straight quarter showing the economy slowed.
Between January and March of this year, the GDP dropped by an annual rate of 1.6%.
President Joe Biden and Democrats said the economy does not meet the definition of a recession.
Republicans strongly disagreed.
North Texans CBS 11 spoke with have their own definition.
David O'Keefe of Plano said, "We're hurting. This economy needs help."
Janice Mangun, a retiree from Argyle said, "I think we're definitely in a recession. "I'm not buying extra things. I'm not buying clothes, we're not buying cars, we're not doing any of that."
The national economic slowdown comes as Texas was booming.
Companies and jobs are relocating to the Lone Star State and new residents are moving in.
Texas Comptroller Glenn Hegar told CBS 11 this week that there is no indication of a recession in the Lone Star State.
"We do not see a recession happening here in Texas here in the in the foreseeable future."
Hegar said while Texas saw record sales tax revenues during the past year, it won't last forever.
"Do we see a slowdown compared to the record year we've had? Absolutely, it's going to slow some. However, with that we think the economy is going to continue to generate jobs, businesses want to continue to move here."
SMU Economics Professor Mike Davis said Texas may be protected a bit by the strong oil and gas industry and by the cost of housing, which is still lower than most of the rest of the country.
But he Davis Texas may still be vulnerable. "When the hurricane hits, everybody's going to get wet. Texas will be impacted by this."
Asked how this economic slowdown compares with previous downturns, Davis said, "There's nothing certain, especially in these current conditions. As I'm trying to make comparisons, analogies between previous business downturns, what we're seeing now is nothing like what we saw in 2007-2008. It wasn't like 2000-2001. It's most similar to what we saw a long, long time ago, 1980-81. But again, it's crazy what's happening now. People should be prepared for anything."
Davis said there are some things you should be doing right now to protect yourself.
"Look after your own personal finances very carefully, you know, make sure that your job is as secure as you can make it, try and save up some money. That's more important than anything."
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