Is the US Headed for a Recession?

Real-time economic indicators tracking recession risk

12-Month Recession Probability

0%50%100%
0.6%
Low Risk

Based on NY Fed model using Treasury yield spread

Historical Trends
Recession Probability+0.100.6%Jun 1
Treasury Yield Curve+0.39%Aug 28
Unemployment Rate-0.074.1%Jul 1
Sahm Rule-0.053-0.03Jul 1
Consumer Sentiment+1.855.2Jul 1
Initial Jobless Claims+2.2K206KAug 22
Industrial Production+0.16103.0Jul 1
Real Retail Sales+0.4B$229BJul 1
Building Permits+31433KJul 1
Fed Regional Surveys
Empire State20.6Aug 1
Philly Fed47.4Aug 1
Richmond Fed4.0Aug 1
Dallas Fed1.8Jul 1
Chicago Fed (CFNAI)-0.08Jul 1
Leading Signals
Leading Economic Index+0.05100.8Jun 1
Temp Help Services+52505KJul 1
Real Personal Income+0.0B$16.6BJul 1
Credit & Financial
Credit Spreads (HY OAS)-0.022.63%Aug 27
S&P 500 (YoY %)+19.0%Aug 28

Historical Trends

Recession Probability

0.6%

NY Fed 12-month forward probability

Treasury Yield Curve

+0.39%

10-Year minus 2-Year spread

Unemployment Rate

SMA -0.074.1%

Bureau of Labor Statistics U-3

Sahm Rule Indicator

SMA -0.053-0.03

Triggers at 0.5 (red line)

Consumer Sentiment

SMA +1.855.2

University of Michigan Index

Initial Jobless Claims

SMA +2.2K206K

4-week moving average

Industrial Production

SMA +0.16103.0

Manufacturing, mining & utilities (2017=100)

Real Retail Sales

SMA +$0.4B$229B

Consumer spending adjusted for inflation

Building Permits

SMA +31433K

New housing units authorized

Fed Regional Surveys

Empire State (NY Fed)

20.6

New York manufacturing conditions

Philadelphia Fed

47.4

Mid-Atlantic manufacturing index

Richmond Fed

4.0

Fifth District manufacturing composite

Dallas Fed

1.8

Texas manufacturing outlook

Chicago Fed (CFNAI)

-0.08

National economic activity

Leading Signals

Leading Economic Index

SMA +0.05100.8

OECD Composite Leading Indicator (amplitude adjusted)

Temp Help Services

SMA +52505K

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 -0.022.63%

ICE BofA High Yield Option-Adjusted Spread

S&P 500

7712

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.