A yield curve inversion is among the most consistent recession indicators, but other metrics can support it or give a better sense of how intense, long, or far-reaching a recession will be.
For example, the Great Recession stemmed from the collapse of the US real estate market and a financial crisis tied to mortgage-backed assets. It led to widespread foreclosures, loss of life savings and, eventually, global economic crisis.
Yet not every recession is the same, and there's no guarantee that the next downturn will cause foreclosures or another kind of financial loss.
Economists look at countless metrics to predict what future recessions will look like, including: the unemployment rate, home starts, wage growth, consumer confidence, GDP, job quits, and consumer debt.
Some figures will lend hints as to when, where, and how a recession will hit, while others may only change after an economic contraction already begins. It's even possible the most dependable indicators haven't been found. Keeping an eye on a select number of popular metrics can help investors weather the storm if a recession grows increasingly likely.