HEADLINES IN THE SPOTLIGHT
HOUSEHOLD DEBT SOARS AT THE FASTEST PACE IN 15 YEARS The Federal Reserve reported that U.S. Households increased debt during the third quarter at the fastest pace in 15 years due to hefty increases in credit card usage and mortgage balances. Total debt jumped by $351 billion for the July-to-Sep- tember period, the largest nominal quarterly increase in 2007, bringing the collective household IOU in the U.S. to a fresh record $16.5 trillion, up 2.2% from the previous quarter and 8.3% from a year ago. The increase follows a $310 billion jump in the second quarter and represents a $1.27 trillion annual increase. Debt has surged over the past year due to inflation running near its highest pace in more than 40 years and amid rising interest rates and strong consumer demand.
MAIN STREET TAKING ADVANTAGE OF BEING SMALLER The retail battle over the past few decades has cited one of two wars: Amazon and e-commerce against the big brick-and-mortar retailers, and everybody big against small Main Street entrepreneurs. But in the current economic environment with raising infla - tion, supply chain bottlenecks and volatile consumer changing spending patterns, small business experts say that Main Street should be more optimistic about the advantages of being small. The inventory builds and subsequent markdowns from the biggest retailers, show that even the best can get this consumer economy wrong. In fact, small business owners, being closer to relationships on both the supply and customer ends, may be able to react better to this fast-changing environment. This gives small business owners, whether B2B or B2C, who can connect directly with customers, to under- stand what their needs are, a potential advantage that can’t be calculated by an big business’s algorithms.
META’S WHATSAPP FOR BUSINESS WhatsApp is already widely popular with U.S. consum- ers. Now Meta Platforms is turning more attention to building its small business base. The Facebook parent company launched WhatsApp Business in 2018 with free, simple tools to help small businesses keep in touch with customers, offering a way for them to directly interact, search for products and indicate purchasing interest. Soon the company will roll out a premium service to small businesses, and it’s doubling down on a newer advertising format called “click-to-message,” which allows consumers to click on a company’s ad within Facebook or Instagram and directly start a conversa- tion with that business on Messenger, Instagram or WhatsApp. These initiatives offer Meta the ability to boost adver- tising revenue, stay relevant with small businesses and gain incremental revenue from the premium services offered
LAB-GROWN BLOOD GIVEN TO HUMANS IN WORLD-FIRST LANDMARK CLINICAL TRIAL Blood grown in a laboratory has been transfused into humans for the first time in a landmark clinical trial that U.K. researchers say could significantly improve treat - ment for people with blood disorders and rare blood types. Two patients in the U.K. received tiny doses — equiv- alent to a few teaspoons — of the lab-grown blood in the first stage of a wider trial designed to see how it behaves inside the body. The trial, which will now be extended to 10 patients over the course of several months, aims to study the lifespan of lab-grown cells compared with infusions of standard red blood cells.
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FALL/WINTER 2022 • SPOTLIGHT ON BUSINESS MAGAZINE
SPOTLIGHT ON BUSINESS MAGAZINE • FALL/WINTER 2022
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