Bank of America Increases Odds of a Recession in the Next Year
- 5 years ago
US Bank Increases Odds of a Recession in the Next Year.
According to Bank of America, the chances of an economic downturn are now more than 30%.
Our official model has the probability of a recession over the next 12 months only pegged at about 20%, but our subjective call based on the slew of data and events leads us to believe it is closer to a 1-in-3 chance, Bank of America’s head of U.S. economics Michelle Meyer, via statement.
Recession fears have increased during the ongoing U.S.-China trade war and slowing business investment in America.
A worldwide slowdown has contributed to falling interest rates in the U.S. as well.
Meyer adds that there are a few economic indicators currently at levels where they
were when previous recessions struck.
They include auto sales and industrial production
According to Bank of America, the chances of an economic downturn are now more than 30%.
Our official model has the probability of a recession over the next 12 months only pegged at about 20%, but our subjective call based on the slew of data and events leads us to believe it is closer to a 1-in-3 chance, Bank of America’s head of U.S. economics Michelle Meyer, via statement.
Recession fears have increased during the ongoing U.S.-China trade war and slowing business investment in America.
A worldwide slowdown has contributed to falling interest rates in the U.S. as well.
Meyer adds that there are a few economic indicators currently at levels where they
were when previous recessions struck.
They include auto sales and industrial production