(CercleFinance.com) – The index of leading indicators fell for the fifth consecutive month in July, the Conference Board announced on Thursday, a bearish series that reinforces the risks of a recession in the coming months.
This so-called ‘precursor’ index fell by 0.4% to 116.6 last month, after having already fallen by 0.7% in June.
‘Consumer pessimism and stock market volatility, along with a slowdown in the job market, residential construction and industrial orders suggest that the weakness in activity will intensify and spread more broadly to the rest of the American economy,” predicts Ataman Ozyildirim, director of economic research at the Conference Board.
For the employers’ organization, American growth should therefore come to a halt in the third quarter, before entering a short and moderate recession at the end of 2022, or at the beginning of 2023.
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