U.S. Recession Model Confirms Economic Downturn Already Arrived
Economists and regular people alike have been not so anxiously waiting for this week’s economic news. One month ago the economy was being touted 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 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.
<h2>Distressing indications amongst the new economic indicators</h2>
So what exactly are these new signs and how do they reflect the state of the economy in the United States. There is a growing consensus that just using stock prices is an inadequate way to measure the overall health of the economy as a whole. Here are the indicators that economists have been most interested in this week.
<h2>Greatly increasing unemployment rate</h2>
Each and every week for the past four weeks in a row we have seen over 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 astounding and will have demoralizing effects on the economy long term.
<h2>The decline in homebuilding greater than anticipated</h2>
One of the lesser-known ways that economists like to measure the wellness of an economy is to look at how many houses are being built and how many are being bought. Right now there has been a large decline in the number of new homes being built. This is often a indicator that a recession is right around the corner.
<h2>Obvious negative results on the economic Coefficient Index</h2>
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 number. This has also been showing steady negative growth at a fast rate.
<h2>What Does This Indicate for the Future?</h2>
Most economists will tell you that it is not worth the time to try and anticipate 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 stepping into into a significant recession.
See more information at <a href=”https://www.bloomberg.com/graphics/us-economic-recession-tracker/”>Bloomberg</a>