Thursday, December 5, 2024

Charts Indicating Economic Weakness – December 2024

Throughout this site there are many discussions of economic indicators.  This post is the latest in a series of posts indicating facets of U.S. economic weakness or a notably low growth rate.

The level and trend of economic growth is especially notable at this time. As seen in various sources, recession estimates have been at elevated levels.

As seen in the October 2024 Wall Street Journal Economic Forecast Survey the consensus (average estimate) among various economists is for 2.21% GDP in 2024, 1.92% GDP in 2025, 2.15% GDP in 2026, and 2.13% in 2027.

Charts Indicating U.S. Economic Weakness

Below is a small sampling of charts that depict weak growth or contraction, and a brief comment for each:

University of Louisville and Oklahoma State University: LoDI National Index (LODINIM066N)

The LoDI National Index is described in FRED as:

The LoDI Index uses linear regression analysis to combine cargo volume data from rail, barge, air, and truck transit, along with various economic factors. The resulting indicator is designed to predict upcoming changes in the level of logistics and distribution activity in the US and is represented by a value between 1 and 100. An index at or above 50 represents a healthy level of activity in the industry.

As seen in the long-term chart below, the index appears to have recently peaked.

Shown below is a chart with data through December 2024 (last value of 75.83143), last updated December 2, 2024:

LoDI National Index

Below is this measure displayed on a “Percent Change From Year Ago” basis with value -2.8%:

LoDI National Index Percent Change From Year Ago

source: University of Louisville. Logistics and Distribution Institute and Oklahoma State University, University of Louisville and Oklahoma State University: LoDI National Index [LODINIM066N], retrieved from FRED, Federal Reserve Bank of St. Louis; accessed December 4, 2024: https://fred.stlouisfed.org/series/LODINIM066N

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Job Openings (JTSJOL)

Job openings (Job Openings: Total Nonfarm [JTSJOL]), although still at a high level, have recently declined significantly. This “Job Openings” measure had a value of 7,744 (Thousands) through October 2024 as of the December 3, 2024 update, as shown below:

JTSJOL

Below is this measure displayed on a “Percent Change From Year Ago” basis with value -10.8%:

JTSJOL Percent Change From Year Ago

source: U.S. Bureau of Labor Statistics, Job Openings: Total Nonfarm [JTSJOL], retrieved from FRED, Federal Reserve Bank of St. Louis; accessed December 4, 2024: https://fred.stlouisfed.org/series/JTSJOL

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Motor Vehicle Retail Sales: Heavy Weight Trucks (HTRUCKSSA)

Sales of “Heavy Weight Trucks” (HTRUCKSSA) has recently been volatile. Shown below is this measure with last value of 32.486 Thousand through October 2024, last updated November 27, 2024:

HTRUCKSSA

Below is this measure displayed on a “Percent Change From Year Ago” basis with value -14.4%:

HTRUCKSSA Percent Change From Year Ago

source: U.S. Bureau of Economic Analysis, Motor Vehicle Retail Sales: Heavy Weight Trucks [HTRUCKSSA], retrieved from FRED, Federal Reserve Bank of St. Louis; accessed December 4, 2024: https://fred.stlouisfed.org/series/HTRUCKSSA

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Net Percentage of Domestic Banks Reporting Stronger Demand for Commercial and Industrial Loans from Large and Middle-Market Firms (DRSDCILM)

“The Net Percentage of Domestic Banks Reporting Stronger Demand for Commercial and Industrial Loans from Large and Middle-Market Firms” measure has been notably weak.  The current value is -21.3% as of the November 12, 2024 quarterly update:

DRSDCILM

source: Board of Governors of the Federal Reserve System (US), Net Percentage of Domestic Banks Reporting Stronger Demand for Commercial and Industrial Loans from Large and Middle-Market Firms [DRSDCILM], retrieved from FRED, Federal Reserve Bank of St. Louis; accessed December 4, 2024: https://fred.stlouisfed.org/series/DRSDCILM

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Other Indicators

As mentioned previously, many other indicators discussed on this site indicate weak economic growth or economic contraction, if not outright (gravely) problematical economic conditions.

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The Special Note summarizes my overall thoughts about our economic situation

SPX at 6086.49 as this post is written

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