Recession Watch: No Double-Dip

According to the National Bureau of Economic Research, a recession is a "significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales."  Here's how some of those key recession-indicating variables are doing:

1. Industrial production: Increased by 4.67% at an annual rate over the most recent three month period from May to August.

2. Private payroll employment: Increased by 1.27% at annual rate during the most recent three month period from May to August.

3. Real GDP: Increased by 1.33% in the second quarter.  

4. Real Retail sales: Decreased by 0.56% in the May-August quarter, at an annualized rate.

Other indicators:

5. Automakers are reporting strong sales gains in September vs. last year: Chrysler +27%, Ford +9% and GM +20%.  

6. The September ISM manufacturing index beat consensus expectations today and increased to a three-month high of 51.6, which is historically consistent with real GDP growth above 3%. 

7. Weekly rail freight shipments are showing ongoing signs of increases in economic activity, not declines.   

8. Jeremy Piger's "recession probability" (based on four monthly variables: non-farm payroll employment, industrial production, real personal income excluding transfer payments, and real manufacturing and trade sales) was updated last week for July at 0.9% (less than 1 out of 100 chance), unchanged from June, and down from 1.2% in May and 1.1% in April. 
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!