Economic Signals for US Markets Indicate Recession
Economists and everyday people alike have been not so impatiently waiting for this week’s economic updates. One month ago the economy was being boasted as the strongest it has ever been in history. Yet only one month later indications are building that the economy is anything but that. Some of these data 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.
Distressing indications amid the new economic indicators
So what exactly are these new indicators and how do they exhibit the state of the economy in the United States. There is a growing viewpoint that just using stock prices is an inadequate way to measure the fitness of the economy as a whole. Here are the indicators that economists have been most interested in this week.
Highly increasing unemployment rate
Each and every week for the past 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 unbelievable and will have debilitating effects on the economy long term.
Expected Homebuilding decline sharper then estimated
One of the lesser-known ways that economists like to measure the health of an economy is to look at how many properties are being built and how many are being bought. 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.
Economic Coefficient Index indicates terrible times ahead
The coefficient index is a measure of the economy that is put together by a group of economists that are known as The Conference Board. This indicator is made to measure current economic conditions in the country by analyzing multiple aspects of the economy and distilling the data into one easy to understand quantity. This has also been showing continuous negative growth at a fast rate.
What Does This Signal for the Possible Future?
Most economists will tell you that it is not worth the time to try and forecast 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 concentrate 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