New York, NY (CNN)A broad gauge connected the wellness of the US system dropped successful August for the sixth consecutive month, reinforcing concerns astir a imaginable recession.
The Conference Board said Thursday that its Leading Economic Index for the United States dipped past month. The index, which tracks a scope of metrics capturing enactment successful the jobs market, manufacturing, fiscal markets and housing, is designed to observe erstwhile recessions are coming.
Among the 10 components successful the index, each but 2 were successful antagonistic territory implicit the past six months.
Ataman Ozyildirim, elder manager of economics astatine The Conference Board, said the six-month slump for this scale is "potentially signaling a recession."
"Economic enactment volition proceed slowing much broadly passim the US system and is apt to contract. A large operator of this slowdown has been the Federal Reserve's accelerated tightening of monetary argumentation to antagonistic inflationary pressures," Ozyildirim said, adding that The Conference Board projects a recession successful the coming quarters.
Recessions are officially declared by a sheet of economists astatine the National Bureau of Economic Research and that determination typically comes agelong aft the downturn has really begun.
"Recession dynamics are gathering steam," Gurleen Chadha, US economist astatine Oxford Economics, wrote successful a enactment connected Thursday. "Corporations should propulsion backmost connected the labour marketplace reins starring to slower employment growth."
Fears of a looming recession person been triggered by crushing inflation, the Fed's massive involvement complaint hikes and back-to-back quarters of declining gross home merchandise during the archetypal fractional of this year.
However, galore economists accidental the jobs marketplace remains excessively beardown for the US system to beryllium successful a recession. During recessions, businesses edifice to wide layoffs, and economical reports bespeak that is not happening close now.
New numbers released connected Thursday showed that archetypal jobless claims roseate lone somewhat past week and stay adjacent the lowest level since May.