U.S. households have been far more conservative in their debt accumulation relative to the government and corporations, rising just 43% from a decade ago (or 3.72% annualized). Compare this to U.S. public debt per capita which has grown 79% (or 6.33% annualized) and U.S. corporate debt outstanding which has grown 85% (or 6.68% annualized), during the same decade. If recession concerns are embedded anywhere in the economy, look to corporate decision-making on their accumulated debt. Proactive risk management, which could include aggressive cost-cutting measures, may be a CFO’s only go-to tool.
