America and the rest of the world doesn't want to face another recession again. The United States has just recently been starting to heal from the 2008 economic drop but there are reports that indicate that America may be looking at another recession soon.
If another recession occurs again, then America's employment and retirement patterns will be affected starting with another round of massive lay-offs. As fears of a recession have already started to subside, analysts are still keeping an eye on the economic state. According to Business Insider, the United States economy is doing pretty well right now but there is a tingling sense of security. Jeremy Klein at FBN Securities explained that there is an indicator that tells him that a recession is coming.
"While I am encouraged by the positive inertia exhibited by stocks, some dark clouds sit on the horizon," Klein announced. He is referring to the Capacity Utilization. Capacity Utilization is a measure of the output of existing factories. Business Insider explains in an example that if factories are cranking on all cylinders, so to say, utilization would be at 100%. As it drops lower, that means that factories are sitting idle or not producing as much as they could be. It could be read as a measure of high demand where people purchase the products but there aren't enough supplies. Or it could also mean another thing.
Reports have presented that the smoothest trending growth barometer cannot possibly reverse its downward momentum. For Klein, the warning sign is the substantial drop over the past years. "The reading has declined 4.8% from its November 2014 peak," wrote Klein. Currently, the reading stood at 74.8%
But George Pearkes of Bespoke Investment Group does not generally agree. Pearkes pointed at energy being the reason for the recent decline. Whatever the reason may be, reports have indicated that the United States continues to progress in the right direction, currently.
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