Courtesy of Mish.
On September 30, I posted some charts of Real Gross Domestic Income and Real Gross Private Domestic Investment.
Both indicators provide hints of recession possibility, but both are also prone to lots of false signals. Let’s recap the charts, then combine them to make a less noisy indicator.
Real Private Gross Domestic Investment
Real private investment (not to be confused with income) is a measure of investment in the real economy, not under the influence of massive amounts of government spending.
Real Gross Domestic Income
GDI is the sum of all income earned while producing goods and services within a nation’s borders. It differs from gross domestic product (GDP), which gauges economic activity based on expenditure.
