Economic Index Drops to Lowest Since Pandemic, But Recession Fears Ease Slightly

• Leading Economic Index fell to lowest level since April 2020, indicating economic headwinds ahead • First time since summer 2022 that index is not signaling an imminent recession • 6 out of 10 components of the index were positive over the past 6 months • Group forecasts "near-to-zero" real GDP growth in Q2 and Q3 2024
• Some economists still predict a recession could hit mid-2024 due to weaknesses in labor market, inflation, and consumer spending