Friday, October 21, 2011

ECRI Weekly Leading Index: October 14 2011

The latest release of the Economic Cycle Research Institute’s (ECRI) Weekly Leading Index has weakened yet again bringing the all important annualized “growth” component to a value of -10.10 and continuing firmly suggest recession call on the part of the ECRI’s economics staff .

The chart above shows the ECRI’s Weekly Leading Index growth component since 2001.

Notice that this index has turned notably negative which, along with an erosion in many other key macro-economic series, appears to be signaling recession is nigh.

The following video of Achuthan with Bloomberg’s Tom Keene is well worth the watch as Achuthan details his reasoning for his recession call depicting it as “inescapable” as “contagion in the forward looking indicators” look like “wildfire”.