Households had sharply pulled back their discretionary spending, were tending to try to save more and were looking to pay down debts. Businesses had responded very quickly to a fall in demand by cutting production and costs, as well as shelving their plans for expansion.
It was already fairly clear by February that the resulting contraction in economic activity in the December quarter was severe in many countries, and that global growth had suffered its biggest setback in decades. Global trade was falling rapidly.