Do those so-called US recession indicators actually mean anything? | Gene Marks
The media likes to advertise well-known metrics like unemployment and the ‘lipstick index’, but the truth is that no one really knowsAs someone who keeps a close eye on the economy, I often bump into those strange metrics that people like to write about that, supposedly, unlock the secret of whether or not a recession is looming.Given what’s going on, it’s no surprise that they are back again. Just last week Bloomberg reported a cut in spending at hair stylists. There’s the “lipstick index” – in tough economic times, women load up on lipstick instead of spending their dwindling funds on bigger-ticket items. Former Fed chair Alan Greenspan liked to follow men’s underwear sales because hey, when times are tough, we guys are not willing to buy new shorts. Continue reading...
The media likes to advertise well-known metrics like unemployment and the ‘lipstick index’, but the truth is that no one really knows
As someone who keeps a close eye on the economy, I often bump into those strange metrics that people like to write about that, supposedly, unlock the secret of whether or not a recession is looming.
Given what’s going on, it’s no surprise that they are back again. Just last week Bloomberg reported a cut in spending at hair stylists. There’s the “lipstick index” – in tough economic times, women load up on lipstick instead of spending their dwindling funds on bigger-ticket items. Former Fed chair Alan Greenspan liked to follow men’s underwear sales because hey, when times are tough, we guys are not willing to buy new shorts. Continue reading...
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