Posted: March 17, 2023 at ten:12 am EST
The numbers: America’s top financial index fell .three% in February — its 11th straight decline — and continued to signal an impending recession.
Economists polled by The Wall Street Journal had forecast a .four% decline.
The LEI is a gauge of ten indicators created to show no matter if the economy is enhancing or deteriorating. The report was published…
Numbers: America’s top financial index fell .three% in February — its 11th straight decline — and continued to signal an impending recession.
Economists polled by The Wall Street Journal had forecast a .four% decline.
The LEI is a gauge of ten indicators created to show no matter if the economy is enhancing or deteriorating. The report is published by a non-profit conference committee.
Significant image: The economy has slowed due to the finish of pandemic stimulus and the effects of higher inflation, forcing the Federal Reserve to raise interest prices.
Larger borrowing expenses have a tendency to tame inflation, but at the price of weaker financial development.
Though the top index has been signaling a recession for months, the economy is nonetheless expanding. The massive query is no matter if the most recent banking crisis will ultimately grow to be a turning point. So far, regulators seem to have contained the harm.
Important particulars: Eight of the ten indicators tracked by the Conference Board fell in February.
A measure of existing financial circumstances, meanwhile, rose a meager .1% in February.
The so-known as lag index — a appear in the rearview mirror — also enhanced by .1%.
Searching ahead: “The top financial index continues to point to the danger of a recession in the US economy,” mentioned Justina Zabinska-La Monica, senior manager of small business cycle indicators at the board.
“The most recent economic turmoil in the US banking sector is not reflected in the LEI information, but could have a damaging influence on the outlook if it continues,” she mentioned.
Industry reaction: The Dow Jones Industrial Typical DJIA and the S&P 500 SPX fell in trading on Friday on issues about the US economic method following the failure of a Silicon Valley bank.