U.S. economy headed for difficulty, major index signals

Published: March 17, 2023 at ten:12 a.m. ET

The numbers: The U.S. major financial index fell .three% in February — the 11th decline in a row — and continued to signal an upcoming recession.

Economists polled by The Wall Street Journal had forecast a .four% drop.

The LEI is a gauge of ten indicators created to show whether or not the economy is having greater or worse. The report is published…

The numbers: The U.S. major financial index fell .three% in February — the 11th decline in a row — and continued to signal an upcoming recession.

Economists polled by The Wall Street Journal had forecast a .four% drop.

The LEI is a gauge of ten indicators created to show whether or not the economy is having greater or worse. The report is published by the nonprofit Conference Board.

Massive image: The economy has slowed due to the finish of pandemic stimulus and the effects of higher inflation, which has forced the Federal Reserve to raise interest prices.

Greater borrowing charges ordinarily tame inflation, but at the price of a weaker financial development.

Though the major index has been signaling a recession for months, the economy is nonetheless expanding. A large query is whether or not the most up-to-date banking crisis ends up becoming a tipping point. So far regulators seem to have contained the harm.

Essential information: Eight of the ten indicators tracked by the Conference Board fell in February.

A measure of existing financial circumstances, meanwhile, rose a scant .1% in February.

The so-named lagging index — a appear in the rearview mirror — also enhanced by .1%.

Seeking ahead: “The major financial index nonetheless points to threat of recession in the U.S. economy,” stated Justyna Zabinska-La Monica, senior manager of busines cycle indicators at the board.

“The most current monetary turmoil in the U.S. banking sector is not reflected in the LEI information but could have a damaging influence on the outlook if it persists,” she stated.

Industry reaction: The Dow Jones Industrial Typical

DJIA

and S&ampP 500

SPX

fell in Friday trades amid nagging worries about the U.S. monetary technique following the failure of Silicon Valley Bank.