Economists and normal people alike have been not so eagerly 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 signals are building that the economy is anything but that. Some of these figures 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>Troubling indicators amongst the new economic indicators</h2>
So what exactly are these new signals and how do they reveal 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.
Unemployment rates climbing higher the expected</h2>
Each and every single 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 astonishing and will have devastating 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 health of an economy is to look at how many homes are being built and how many are being purchased. 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.
<h2>Obvious negative results on the economic Coefficient Index</h2>
The coefficient index is a measurement of the economy that is put together by a group of economists that are identified as The Conference Board. This signal 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 sharp 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 over night. 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 critical recession.
See more information at <a href=”https://www.bloomberg.com/graphics/us-economic-recession-tracker/”>Bloomberg</a>