Doom and Economic Gloom Courtesy of Dave Stephens

Last week, Coupa's Dave Stephens shared some insightful economic numbers on his blog, Procurement Central. Dave cited how the purchasing managers index (PMI) fell to 50.9 in March (below 50 often signals an economic retreat). According to Dave's post, "People seem to disagree whether the US is falling into a recession, but the PMI trend sure seems to predict just that. For many businesses, a recession in the US will lead to the proverbial tightening of the corporate belt -- which usually involves being more disciplined about spending. But with inflation not budging, where will savings come from? Perhaps more offshoring, combined with more urgency around initiatives designed to boost corporate efficiency.” I would also add to Dave's analysis that if the downturn does occur, more aggressive cost management and sourcing programs -- both global and regional -- will become the rule in Corporate America, not the exception.

Jason Busch

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