Economic Signals for US Markets Indicate Recession
Economists and normal people alike have been not so impatiently waiting for this week’s economic news. One month ago the economy was being boasted as the strongest it has ever been in history. Yet only one month later signs are building that the economy is anything but that. Some of these numbers are on a level that has not been seen in this country for nearly 100 years with the last time being during the original Great Depression.
Troubling indicators amid the new economic indicators
So what exactly are these new signals and how do they exhibit the state of the economy in the United States. There is a growing opinion that just using stock prices is an inadequate way to measure the health of the economy as a whole. Here are the indicators that economists have been most interested in this week.
Highly increasing unemployment rate
Every single week for the last four weeks in a row we have seen more than 5 million new jobless claims. These are just the initial claims too. That means that in total 22 million people filed for unemployment for their first time in the month of March. This is astonishing and will have debilitating effects on the economy long term.
Forecasted Homebuilding decline sharper then forecast
One of the lesser-known ways that economists like to measure the overall health of an economy is to look at how many houses are being built and how many are being ordered. Right now there has been a sharp decline in the number of new homes being built. This is often a sign that a recession is right around the corner.
Clear negative outcomes on the economic Coefficient Index
The coefficient index is a measurement of the economy that is put together by a team of economists that are known as The Conference Board. This indicator is made to measure current economic conditions in the country by analyzing multiple points of the economy and distilling the data into one easy to understand quantity. This has also been showing regular negative growth at a quick rate.
What Does This Signal for the Future?
Most economists will tell you that it is not worth the time to try and predict the future. If anything the past few weeks should tell you that things can change dramatically overnight. For now, the best thing you can do is focus on the present moment but the more numbers that are coming in the more that it looks like we are entering into a serious recession.
See more information at Bloomberg