Sunday, June 08, 2008

A Perfect Recession Indicator

Good stuff from the Big Picture.
Follow the link in the clip for the details.

The NYT's Floyd Norris notes that the 12-month change in private sector jobs is down 125,000 jobs from may 2007 to May 2008.

Since 1953, this indicator has a perfect record, identifying 9 out of 9 recessions. When it flips negative (year over year), the economy is already in recession each and every time:

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