The recession first affects those industries related to consumption. During the economic recession, people's confidence and willingness to consume decreased, which led to a sharp drop in the revenue and profits of retail, tourism, catering, entertainment and other industries. These industries usually rely on consumer spending and credit markets, so they are the "wind vane" of economic recession.
during the economic recession, people usually spend less on tourism and entertainment and choose to spend more time at home, which will have a negative impact on the tourism and entertainment industry. The catering industry will also be affected because people will eat out less often and cook at home instead. The retail industry will also be hit hard, because consumers usually spend less on non-essential items.
In addition, the real estate industry is also the hardest hit by the economic recession. The real estate market is usually the leading indicator of economic growth, so when the economy is in recession, the real estate market will shrink rapidly. Real estate developers will reduce the development of new projects, housing sales will decrease, and prices will also fall. In addition, industries such as construction and decoration will also be affected.
the financial services industry is also an important victim of the economic recession. As the credit market shrinks, it is difficult for people to obtain loans and credit, and the business volume and profitability of financial service companies will also be affected. During the economic recession, investors usually reduce their investment, and the stock market and bond market will also be affected.
manufacturing is an important example, because it is usually an important part of economic growth. In the economic recession, orders and production of manufacturing industry usually decline, because people's purchasing power declines, and enterprises need to reduce inventory and production costs. This may lead to the unemployment of manufacturing workers, further aggravating the economic recession.
the energy and raw material industries may also be affected. Economic recession will lead to a decline in global demand, so will the prices of energy and raw materials. This may lead to a decline in income and profits of energy and raw materials companies, and will also affect the entire supply chain and related industries.
during the economic recession, enterprises usually reduce investment and recruitment, which may affect the technology and innovation industries. Because these industries usually need a lot of investment and human resources to promote innovation and development. In addition, people may buy less expensive technology equipment and software, which will also have a negative impact on technology companies.
in addition, there are logistics and transportation industries. As people's purchasing power declines, the demand for goods and commodities will also decline, which will lead to a decline in the business volume of logistics and transportation companies. In addition, the fluctuation of fuel price will also affect the cost and profitability of logistics and transportation companies.
education and health care industries may also be affected. During the economic recession, people may spend less on education and health care, which may lead to a decline in the income of education and health care institutions. In addition, people may delay medical treatment to save money.
finally, the economic recession will also have a negative impact on service industries, such as consulting, law, accounting and advertising. These industries are usually related to the financial situation of enterprises and individuals, so in a recession, people may use these services less or choose cheaper alternatives.
to sum up, the economic recession will have a negative impact on all industries, but different industries may be affected to different degrees, so enterprises need to take corresponding measures to adapt to the economic recession environment.