Read previewThe US could be "sleepwalking" into a recession, and signs of a downturn in key areas of the economy are starting to show, according to top economist David Rosenberg.
That's a strong sign the economy is weakening, as manufacturing has only contracted on two occasions since 1997 without the economy later slipping into recession, Rosenberg noted.
The 2-10 Treasury yield curve, a notoriously accurate recession indicator, has signaled a coming downturn since July 2022.
The labor market is cracking, a slowdown in services activity is dragging on real-time growth, and forward looking financial signals still point to a coming slowdown," Rosenberg said.
Rosenberg has been warning of a coming recession for months — and fears of a downturn are rising as investors anticipate the Fed keeping interest rates higher-for-longer.
Persons:
—, David Rosenberg, Rosenberg, We're, That's
Organizations:
Service, Business, Treasury