Slowdown/Recession watch - summer edition
» Posted by Martin Weil on July 19, 2006

The National Association of Home Builders index of builder confidence continued its decline in June. This indicator, which has a respectable record predicting economic slowdowns and recessions, is now at levels last seen in 1995. Should this indicator bottom out at current levels, it suggests the US economy is at the edge of a slowdown. Were the index to decline significantly from here, the last precedent is from 1991, when a severe recession did ensue.

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