WU Sahm Recession Indicator

2023年10月25日

The Sahm Recession Indicator devised by Economist Claudia Sahm is a rather insightful tool that captures the onset of recessions by utilizing unemployment data, which can provide more real-time insights compared to quarterly GDP reports. If the three-month simple moving average (SMA) of the unemployment rate exceeds the minimum unemployment rate of the previous 12 months by 0.5 percentage points, it indicates a high likelihood of a recession.

This script allows you to visualize this indicator and set up alerts for when this criterion indicates that a recession could be coming.

2023年11月10日

版本注释

Will not display on any other time frame than Monthly. I added also a yellow line when the signal is exactly on the threshold value.

8月4日

版本注释

Due to the use of the function ta.lowest(unrate3M, 12), which looked back only 11 months since it included the current one, the previous version was not fully accurate. I have fixed this issue.

9月5日

版本注释

Can be switch to a Threshold of 0.61% instead of the 0.5% used by Claudia Sahm.