Ratings agency S&P Global has upped its estimates that the American economy will enter a recession this year.
As Axios reports, S&P “raised the probability of a U.S. recession in 2019 to 20-25 percent” in 2019, up from a 15-20 percent probability just three months ago. The primary indicator that’s raising recession fears is the flattening U.S. Treasury yield curve, which has traditionally been a major sign that the economy is slowing down.
“Although economic indicators continue to point to a sustained economic expansion, heightened investor concerns over global economic developments led to market volatility and disruptions late last year, leaving a mixed picture for the second oldest expansion in U.S. history,” said S&P U.S. chief economist Beth Ann Bovino.
Additionally, Axios reports that “a new survey shows European money managers are growing increasingly weary of a global recession,” as “almost 30% of respondents to Bank of America Merrill Lynch’s latest survey of European money managers said a worldwide economic contraction was their biggest concern.”