James Hamilton: Econbrowser recession indicator index up to 30.5%:
The bare growth of the economy over 2012:Q4-2013:Q1 is the main reason that our Econbrowser Recession Indicator Index jumped up to 30.5%, a significant increase from the 9.2% figure that we released last quarter. This is one objective signal that the recent GDP numbers are even weaker than we've become accustomed to seeing since the economy began its disappointing recovery from the Great Recession in 2009:Q3. Note, however, that this does not mean the economy has entered recession territory. Our index would have to rise above 67% before we would issue such a declaration. Note also that in calculating the current value for the index we allow one quarter for data revision and trend recognition. Thus the latest value, although it uses today's released GDP numbers, is actually an assessment of the state of the economy as of the end of 2013:Q1. However, our index is never revised, so that the numbers plotted in the graph below since 2005 are exactly the values as they were reported one quarter after each indicated historical date on Econbrowser.