Economists and regular people alike have been not so eagerly waiting for this week’s economic news. One month ago the economy was being boasted 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.
Disturbing symbols amid the new economic indicators
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 opinion that just using stock prices is an inappropriate way to measure the overall health of the economy as a whole. Here are the indicators that economists have been most interested in this week.
Significantly increasing unemployment rate
Each and every week for the last 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 registered for unemployment for their first time in the month of March. This is astounding and will have destructive effects on the economy long term.
Predicted Homebuilding decline sharper then estimated
One of the lesser-known ways that economists like to measure the wellness 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 extreme decline in the number of new homes being built. This is often a indicator that a recession is right around the corner.
Economic Coefficient Index indicates daunting times ahead
The coefficient index is a measurement of the economy that is put together by a team of economists that are well known as The Conference Board. This indicator 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 number. This has also been showing continuous negative growth at a sharp rate.
What Does This Signal for the Foreseeable Future?
Most economists will tell you that it is not worth the time to try and forecast 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 concentrate on the present moment but the more numbers that are coming in the more that it looks like we are going into into a severe recession.
See more information at Bloomberg