This Is The Chart That Makes ECRI Scream Recession

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Friday, March 16, 2012 This Is The Chart That Makes ECRI Scream Recession Despite signs that the economy is recovering, research firm ECRI has held to bearish predictions for the U.S. economy. ECRI co-founder Lakshman Achuthan spoke to Bloomberg's Tom Keene this morning to defend his recession call amid an onslaught of criticism. Achuthan provided a deeper look at how exactly ECRI makes its predictions, saying that it focuses on year-over-year indicators for output, employment, income and sales, and the consumer confidence index. In particular, he pointed to the relationship between year-over-year consumption and employment as perhaps the clearest sign that the U.S. is headed back into a recession. "People need to understand the sequence," he said. "I think the hope is that jobs growth will increase consumption in coming months, but in fact jobs growth follows consumption...There are many instances in which job growth precedes a recession." If we look at a graph of these two indicators, it is clear that past U.S. recoveries have virtually all relied on consumption growth... and that consumption growth is slowing down. Read » Also On Money Game Today: Some Great News On The Economy That Everybody Missed This Week 5 Signs That A War With Iran Is Close Ireland Is Launching A Huge St Patrick's Day Diplomatic Offensive FROM TOYS TO TOMBSTONES: How The Spending Patterns Of Americans Change Throughout Their Lives Advertisement CHART OF THE DAY: Why No One Knows How Wall Street Pay Really Works CHART OF THE DAY: The 30-Year Treasury Market Massacre CHART OF THE DAY: A Quick Reminder That Higher Oil Prices Are DEFLATIONARY Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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