Recession ho!
The Economic Cycle Research Institute's Weekly Leading Index has turned notably negative
This chart shows the Economic Cycle Research Institute's weekly index, which has gone negative. It appears to be signaling that a recession is near, the author argues.
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The latest release of the Weekly Leading Index has weekend yet again bringing the all important 鈥済rowth鈥� component to a value of -8.1 and triggering a firm recession call on the part of the ECRI鈥檚 Chief Operations Officer Lakshman Achuthan.
The chart above shows the ECRI鈥檚 Weekly Leading Index growth component since 1968. Notice that this index has turned notable negative which, along with an erosion in many other key macro-economic series, appears to be signaling recession is nigh.
The is well worth the watch as Achuthan details his reasoning for his recession call depicting it as 鈥渋nescapable鈥� as 鈥渃ontagion in the forward looking indicators鈥� look like 鈥渨ildfire鈥�.