Is the US Headed for a Recession?

Real-time economic indicators tracking recession risk

12-Month Recession Probability

0%50%100%
0.8%
Low Risk

Based on NY Fed model using Treasury yield spread

Historical Trends
Recession Probability-0.010.8%Dec 1
Treasury Yield Curve+0.56%Mar 5
Unemployment Rate-0.034.3%Jan 1
Sahm Rule+0.0230.30Jan 1
Consumer Sentiment+0.956.4Jan 1
Initial Jobless Claims-1.4K216KFeb 28
Industrial Production+0.36102.3Jan 1
Real Retail Sales-0.3B$225BDec 1
Building Permits+111448KDec 1
Fed Regional Surveys
Empire State7.1Feb 1
Philly Fed16.3Feb 1
Richmond Fed-10.0Feb 1
Dallas Fed8.9Jan 1
Chicago Fed (CFNAI)0.18Jan 1
Leading Signals
Leading Economic Index+0.12100.6Jan 1
Temp Help Services+92480KJan 1
Real Personal Income-0.0B$16.6BDec 1
Credit & Financial
Credit Spreads (HY OAS)-0.052.97%Mar 4
S&P 500 (YoY %)+18.2%Mar 5

Historical Trends

Recession Probability

0.8%

NY Fed 12-month forward probability

Treasury Yield Curve

+0.56%

10-Year minus 2-Year spread

Unemployment Rate

SMA -0.034.3%

Bureau of Labor Statistics U-3

Sahm Rule Indicator

SMA +0.0230.30

Triggers at 0.5 (red line)

Consumer Sentiment

SMA +0.956.4

University of Michigan Index

Initial Jobless Claims

SMA -1.4K216K

4-week moving average

Industrial Production

SMA +0.36102.3

Manufacturing, mining & utilities (2017=100)

Real Retail Sales

SMA $0.3B$225B

Consumer spending adjusted for inflation

Building Permits

SMA +111448K

New housing units authorized

Fed Regional Surveys

Empire State (NY Fed)

7.1

New York manufacturing conditions

Philadelphia Fed

16.3

Mid-Atlantic manufacturing index

Richmond Fed

-10.0

Fifth District manufacturing composite

Dallas Fed

8.9

Texas manufacturing outlook

Chicago Fed (CFNAI)

0.18

National economic activity

Leading Signals

Leading Economic Index

SMA +0.12100.6

OECD Composite Leading Indicator (amplitude adjusted)

Temp Help Services

SMA +92480K

Temporary help employment (thousands)

Real Personal Income ex-Transfers

SMA $0.0B$16.6B

Personal income less transfer receipts, inflation-adjusted

Credit & Financial Conditions

Credit Spreads (High Yield OAS)

SMA -0.052.97%

ICE BofA High Yield Option-Adjusted Spread

S&P 500

6831

Daily closing price

Understanding Recession Indicators

📉

Yield Curve

When short-term rates exceed long-term rates (inversion), it has preceded every recession since 1955.

Inverted = High Risk

Sahm Rule

Triggers when unemployment rises 0.5% above its 12-month low. Zero false positives since 1970.

≥ 0.5 = Recession
🎯

NY Fed Model

Calculates 12-month forward recession probability using the Treasury spread.

> 30% = Elevated Risk
👷

Unemployment

Rising unemployment indicates economic contraction and reduced consumer spending.

> 5% = Warning
🛒

Consumer Sentiment

Low confidence leads to reduced spending, which can trigger economic slowdowns.

< 60 = High Risk
📋

Jobless Claims

Spike in new unemployment filings signals labor market weakness.

> 300K = Warning
🏭

Industrial Production

Output from manufacturing, mining, and utilities. Declines signal economic contraction.

Declining = Warning
🛍️

Retail Sales

Consumer spending drives 70% of GDP. Falling sales often precede recessions.

Declining = Warning
🏗️

Building Permits

Leading indicator — housing activity often turns down before recessions begin.

Sharp Drop = Warning
🔮

Leading Index

OECD composite leading indicator designed to anticipate turning points in the business cycle relative to trend.

Negative = High Risk
🏭

Regional Fed Surveys

Monthly surveys from NY, Philadelphia, Richmond, Dallas, Chicago, and Kansas City Fed districts track manufacturing conditions.

< 0 = Contraction
💳

Credit Spreads

High yield bond spreads over Treasuries measure credit stress. Widening spreads signal investor fear and tighter financial conditions.

> 5% = Warning, > 6% = Danger
📊

ISM Manufacturing PMI

Survey of purchasing managers. Above 50 signals expansion, below 50 contraction. A leading indicator of economic turns.

< 50 = Contraction
👥

Temp Help Services

Temporary employment is a leading indicator — firms cut temps before permanent layoffs. Declining temp help precedes recessions.

Declining = Warning

Related Economic Data

Data sourced from Federal Reserve Economic Data (FRED). Updated hourly. Not financial advice.