10/8/2021- 4:47 p.m.
US may already be in recession if history of consumer sentiment repeats (Bloomberg report)
Deterioration in consumer expectations suggests the US economy is already in recession despite high employment numbers and wage growth, according to a new study co-authored by a former Bank of England policy maker.
“Downward movements in consumer expectations in the last six months suggest the economy in the United States is entering recession now,” the study says as reported by Bloomberg.
The research states that consumer expectations indexes from the Conference Board and University of Michigan tend to predict American downturns. The CB’s gauge of expectations fell in September to the lowest point since last November indicating a recession may be inevitable.
