Question

What typically happens to non farm payrolls the pmi indicator, and housing starts at the onset of a recession in the united states?

Answer 1

I believe the answer is: Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down.

During the recession, many businesses would close down its operation and many people would lose their job.

Because of this, the complied numbers of goods produced by company would also decreased (which make nonfarm payrolls go down) , people would make less business purchase due to lack of money (which cause pmi indicators to goes down), and the housing would starts to goes down since there would be less people that have jobs to afford it.

Answer 2

Non-farm payrolls refer to jobs in the manufacturing sector and other industries that are not farm. As part of its Employment situation report, the U.S Bureau of Labor Statistics releases closed-followed monthly data on nonfarm payrolls, the statistics from the nonfarm payroll also shows which sectors are generating the most employment additions. It measures the change in the number of people employed during the previous month except to the farming industry. At the onset recession, the nonfarm payrolls tend to reduce. The PMI or the Purchasing Managers Index is a measure of the economic health of the manufacturing sector. As stated by an analyst at TD Securities, the point of view for manufacturing is demoralized, and the sector is in recession.