Chart Of The Day: LEI - Leading-To-Lagging Ratio

Via Lance Roberts of Street Talk Live, While the general consensus from the media, and the majority of analysts, is that the U.S. economy will avoid a recession - there have been numerous indicators that have continued to point to deterioration in the economic fabric.  Most recently industrial production in the U.S. dropped sharply, along with capacity utilization rates, due to the growing recession in Europe, and slowdown in China, which has impacted exports from domestic manufacturers. This past week the monthly release of the Leading Economic Indicators showed that the leading-to-lagging indicator ratio dropped to 89.5 which matches the lowest level in more than 2 1/2 years.  Historically when the leading-to-lagging ratio has fallen below 91 the economy was either in, or about to be in, a recession.   While it is not popular within ...