The Conference Board Leading Indicators Index, designed to forecast business activity in the US six to nine months ahead, fell for the 15th consecutive month in June. This was the longest series of declines seen in the US since the start of the 2007-2009 recession. informs Reuters.
The agency writes that the index’s dynamics indicate that a recession has recently begun in Washington. In June, the index fell 0.7% to 106.1 points, after a revised 0.6% decline in May. Analysts predicted a less significant drop in the index after the publication. According to the agency, the dynamics are driven by a deterioration in consumer sentiment and an increase in the number of applications for unemployment benefits in the US.
“June data shows that economic activity will continue to slow in the coming months,” said Justina Zabinska-La Monica, senior director of business cycle indicators at the Conference Board, quoted by Reuters.
The Conference Board reaffirmed its US recession forecast for the third quarter of 2023 to the first quarter of 2024.
“Higher prices, tighter monetary policy, hard-to-find loans and cuts in government spending could further slow economic growth,” said Zabinska-La Monica.
US Treasury Secretary Janet Yellen July 9 statedthat the possibility of recession cannot be completely eliminated due to “very high inflation” in the country.
old USA estimated Financial collapse in 10 years.
Source: Gazeta
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