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What is the Sahm Rule?

Predicting Early Signs of a Recession.

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FinThink
Jun 20, 2023
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The Sahm Rule states that when the three-month moving average of the national unemployment rate is at least 0.5 percentage points above its low over the prior 12 months, it is the early months of a recession.

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The Sahm Rule is a very good coinciding indicator confirming the early stages of a recession. A recession usually follows by o…

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