U.S. stock exchange traded funds stumbled into the fourth quarter amid predictions the economy it tilting toward another recession.
The economy is moving toward a double-dip recession, according to the Economic Cycle Research Institute. On Friday, the ECRI warned of an unavoidable impending recession, according to a report.
The warning is based on a dozen specialized leading indices, such as the U.S. Long Leading Index, Weekly Leading Index and other shorter-leading indices. Most forward-looking indicators are leaning toward a recession, instead of a “soft landing.”
“The U.S. economy is tipping into a new recession,” Lakshman Achuthan, chief operations officer at ECRI, commented on a radio interview, reports Liz Capo McCormick for Bloomberg. “You have wildfire among the leading indicators across the board. Non-financial services plunging, manufacturing plunging, exports plunging. That is such a deadly combination.”
The ECRI previously predicted that the country would be experiencing a longstanding pattern of slowing growth. Additionally, the institute believes that we are heading toward a period of frequent recessions due to higher cyclical volatility and lower trend growth.