5 September 2023
Bloomberg warns of a recessionary chill as the gap between GDP and GDI widens. GDI has been weaker than GDP for four quarters, signaling economic trouble. Declining GDP growth, plummeting job openings, falling labor leverage ratio, and sinking corporate profits suggest a looming downturn. With data indicating a potential recession since 2022 end, an NBER declaration could highlight the Biden administration’s economic struggles. The economy faces risks from inflation, falling wages, and political narratives.