Chevron shows no signs of recession impact on business

In recent statements from company leaders, Chevron and Uber have both expressed that they do not currently see signs of an impending recession in the United States. Chevron's CEO, Mike Wirth, noted that despite concerns over President Donald Trump's tariffs potentially affecting oil demand, the company does not perceive any signs indicating that the U.S. economy is in or close to a recession. He highlighted the expected slowdown in growth, cutting the International Monetary Fund's growth outlook for the U.S. from 2.7% to 1.8% this year. The decline in crude oil prices has also raised some concerns, with prices falling about 11% since the tariffs announcement. Nonetheless, Chevron remains confident and is not altering its capital spending plans significantly, viewing the macroeconomic effects as a factor that may flow through the economy rather than directly impacting their operations at this stage. Similarly, Dara Khosrowshahi, CEO of Uber, echoed this sentiment by stating that the day-to-day habits of global consumers are maintaining consistency, suggesting robust consumer spending. He mentioned that although media sources may indicate a bleak economic outlook, Uber's business operates on the premise of being recession-resistant, adjusting both revenues and expenses with GDP fluctuations. Therefore, despite potential economic downturns, Uber's pricing and cost of labor would both decrease. Understanding these dynamics is crucial as consumer behavior remains strong, which could alleviate some of the fears regarding a recession impacting these companies. Both company leaders conveyed optimism amid mixed signals from economic indicators and external factors like tariffs affecting growth. While declines in oil prices and heightened production rates by OPEC+ may create instabilities, executives at these companies are prepared for such fluctuations, with Chevron specifically noting that offshore production should remain less affected compared to onshore sectors if prices dip further. Overall, businesses are monitoring economic trends closely while positioning themselves to adapt accordingly, ensuring their operational strategies continue to remain resilient against potential downturns in consumer spending or shifts in the market. In conclusion, while challenges exist due to external pressures, both Chevron and Uber are asserting confidence in their business models at this juncture, supporting a narrative of stability in the face of potential economic changes.