Reason #7: Businesses aren't spending

Posted Oct 25th 2009 10:00AM by Michael Shulman
Filed under: Recession

Reason #7 the economy won't recover in 2010 Businesses do not see a turnaround in 2010. Even with public figures talking up the economy (and who can blame them, it's practically in their job description) businesses are not listening. If consumers aren't spending, why should businesses?

For example, Intel (NASDAQ: INTC) said the year will close strong, although it still will be down compared to 2008. This end-of-the-year optimism is being driven by a once-in-five-year change in the Windows operating system -- something that should have created booming demand, not a modest uptick.

As the consumer continues to struggle, we will see businesses rein in spending further and push back hiring plans throughout next year.

Next: Reason #8: Uncle Sam can't bail us out

Tags: economic recovery, end of recession, INTC, Intel, Michael Shulman, WIndows