The indicator has correctly called five recessions since 1968, and has never warned of a recession that did not occur, according to an analysis by The New York Times.
For instance, the indicator dipped to minus 2.9 percent in November 1979, and a recession began two months later; it dropped to minus 2.6 percent in May 2001, just two months after a recession began.
The indicator measures all sales by new-car dealers, including the sale of used cars, parts, and service. It does not measure sales by dealers who sell only used cars.
For instance, the indicator dipped to minus 2.9 percent in November 1979, and a recession began two months later; it dropped to minus 2.6 percent in May 2001, just two months after a recession began.
The indicator measures all sales by new-car dealers, including the sale of used cars, parts, and service. It does not measure sales by dealers who sell only used cars.