Desk Rentals, the New Economic Indicator

Looking for that economic indicator that picks up on a slowdown? Berkshire Hathaway, the conglomerate headed by investor Warren Buffett, may have what you want. Berkshire Hathaway’s furniture rental division saw demand from business clients grow more slowly in the second quarter, indicating that companies are curbing spending amid less optimism about the U.S. economy.

Demand is “simmering compared to where it was at the beginning of the year, when it looked like the recovery, at least from our perspective, would have been pretty robust,” says Jeff Pederson, the new chief executive officer of Berkshire’s Cort Business Services, the world’s largest provider of rental furniture. “It’s not flatlining, by any stretch of the imagination, but it has slowed down.”