U.S. Recession Model Confirms Recession Already Arrived
Economists and everyday people alike have been not so eagerly 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 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.
<h2>Disturbing indications amongst the new economic indicators</h2>
So what exactly are these new indicators and how do they reflect 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 fitness of the economy as a whole. Here are the indicators that economists have been most interested in this week.
Unemployment rates climbing higher the expected</h2>
Each and every week for the past four weeks in a row we have seen in excess of 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 debilitating effects on the economy long term.
<h2>The decline in homebuilding higher 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 ordered. Right now there has been a steep decline in the number of new homes being built. This is often a signal that a recession is just around the corner.
Economic Coefficient Index shows terrible times ahead</h2>
The coefficient index is a measurement of the economy that is put together by a group of economists that are well known as The Conference Board. This barometer is made to measure current economic conditions in the country by analyzing multiple facets of the economy and distilling the data into one easy to understand number. This has also been showing steady negative growth at a quick rate.
<h2>What Does This Signal for the Foreseeable 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 over night. 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 going into into a critical recession.
See more information at <a href=”https://www.bloomberg.com/graphics/us-economic-recession-tracker/”>Bloomberg</a>