Economics

Yield Curve’s Turn Puts Microscope on U.S. Economic Reports

  • Jobs numbers to add color on whether recession imminent
  • Upcoming data ‘may be the straw that breaks investors’ backs’
Wilding discusses the downside risks to growth.(Source: Bloomberg)
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Economic data rolling in over coming days will go a long way to show whether market concern of an imminent U.S. recession is justified.

A slice of the Treasury yield curve that usually signals a downturn inverted this week by the most since 2007, pushing beyond levels seen in March. That followed recent reports showing April declines for U.S. retail sales, factory output, business-equipment orders and home purchases, while a manufacturing gauge dropped in May to a nine-year low.