WLI Growth Plummets, Indicates Recession Will Worsen

According to the U.S. Weekly Leading Index [US WLI] for the week ending 10/03/2008 published by Economic Cycle Research Institute [ECRI], economic growth remains solidly in recession territory. Lakshman Achuthan of ECRI states, "with WLI growth plummeting to a new 33 year low, the recession is set to worsen rapidly."

The US WLI has a slight lead over business cycles, and is released seven days after the reporting period. Occasionally the WLI level and growth rate can move in different directions, because the latter is derived from a four-week moving average.

click to enlarge

Disclosure: None.