recession indicator

Definition

An economic metric or signal that suggests an economy is entering or likely to enter a recession, such as unemployment rate spikes, inverted yield curves, or declining GDP. Economists watch these closely to anticipate downturns.

Example Usage

Rising unemployment is typically a lagging recession indicator, while a flattening yield curve is a leading one.

Origin

Modern economic terminology; 'recession' comes from Latin 'recedere' (to withdraw), and 'indicator' from Latin 'indicare' (to point out).

Fun Fact

The inverted yield curve—when short-term interest rates exceed long-term rates—has historically preceded every U.S. recession since 1950.

Source: Definition backfill (hailey)

Related Terms

Beginner

aging report

A document that categorizes accounts receivable by how long invoices have been outstanding, essentially a report card showing which customers are ghosting you. The longer the aging period, the less likely you'll ever see that money.

💰 Finance / Accounting

Advanced

Earn-Out

Deferred acquisition payments contingent on the target company hitting future performance metrics, bridging valuation gaps between optimistic sellers and skeptical buyers. It's 'prove it and we'll pay more.'

💰 Finance / Accounting

Beginner

accumulate

To gather, pile up, or grow larger over time—whether it's wealth building your portfolio or technical debt building your migration backlog.

💰 Finance / Accounting

Intermediate

internal rate of return

The discount rate that makes the net present value of an investment zero—basically the breakeven return that justifies the project. If IRR exceeds your hurdle rate, it's theoretically a go; if not, it's a hard pass.

💰 Finance / Accounting

Beginner

crore

Ten million in Indian numbering system—that's 10,000,000 for those who count the Western way. Perfect for discussing mind-bogglingly large sums in South Asian finance without needing to count all those zeros.

💰 Finance / Accounting

Beginner

accounts payable

Money a company owes to suppliers and vendors for goods or services received but not yet paid for. The grown-up version of 'I'll pay you back later,' except with purchase orders and payment terms.

💰 Finance / Accounting

Translate This Term

See “recession indicator” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on X Share on Facebook Share on LinkedIn

Discover a Term

Intermediate

Polling Error

The margin between what polls predicted and what actually happened—usually blamed on pollsters rather than on the peop...