Recession is hot news. However, governments, banks, finance regulatory authorities, economists and analysts can’t agree on what exactly constitutes a recession.

Bill Woods is joined by Barry Urquhart, Managing Director of Marketing Focus, who explains why it’s reasonable to conclude from this that currently recession is a state of mind, rather than a state of the economy.

Lead researcher Barry Urquhart, who conducted a series of attitudinal research sessions in each mainland capital city, says, “there is a noticeable divide between older and younger Australians about the nature and consequences of a recession.”

“Those age 45 years plus have greater expectations, based on past experiences, of a pending recession and the resultant need to contain expenditures. It is they who have already or are planning to reduce expenditure on everyday living items and discretionary purchases.”

“People aged less than 45 years have maintained recent purchase patterns. Real estate prices are the primary concern for this segment.”

“It is significant that the economic fundamentals relating to recession have not yet affected widespread and universal changes in consumer expenditure.”

“That reinforces the contention and conclusion that currently recession is a state of mind, rather than a state of the economy.”

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