Economists and normal people alike have been not so impatiently waiting for this week’s economic updates. One month ago the economy was being applauded as the strongest it has ever been in history. Yet only one month later indicators 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.
Troubling signs 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 condition of the economy as a whole. Here are the indicators that economists have been most interested in this week.
Unemployment rates hiking higher the estimated
Every single 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 staggering and will have demoralizing effects on the economy long term.
The drop in homebuilding steeper than anticipated
One of the lesser-known ways that economists like to measure the health of an economy is to look at how many homes are being built and how many are being ordered. 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 just 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 team of economists that are referred to as The Conference Board. This barometer 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 steady negative growth at a fast rate.
What Does This Indicate for the Foreseeable 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 rapidly. 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 getting into into a serious recession.
See more information at Bloomberg