May
25
2019
Off
Recession Indicator to Watch: Net Domestic Investment to GDP
Net Domestic Investment to GDP is in a long-term downtrend since 1950.
It is not a timing indicator for predicting the end of business cycles. But historicammy, before recessions, it tends to peak (red arrow) and then decline (black arrow). Currently, Net Domestic Investment to GDP has a nice upward slope and shows no sign of peaking. So, it suggests that there is no imminent recession on the horizon.