Growth in the ECRI weekly leading index fell further into negative territory.
The growth rate for the week of June 11 weakened to -5.7%, down from -3.7% in the previous week, which had been the first negative reading in almost a year.
"Despite the WLI’s rapid drop over the last six weeks, its downturn has not been sustained enough to signal an imminent recession," said Lakshman Achuthan, ECRI director. Growth in the May index dropped to 1.5% from 14.1% in April.
Remember, analysts like David Rosenberg are still looking for a –10% reading as a definitive double dip reading. If we do get there and stay there for a couple of weeks, I suspect a double dip is going to happen late this year or early in 2011.