Another recession indicator flashes

Business Insider: The capacity utilization is a measure of the output of existing factories. Measured as a percentage, if factories are cranking on all cylinders, so to say, utilization would be at 100%. As it drops lower, that means that factories are sitting idle or not producing as much as they could be. This could then be read as a measure of demand — if people are buying less than factories will not produce as much.

Klein's warning sign is the measure's substantial drop over the past few years. As of Friday, the reading stands at 74.8%.

"The reading has declined 4.8%  from its November 2014 peak," wrote Klein.

"Throughout the near five decade history of the series, a slip of a commensurate amount has always coincided with a recession. The second derivative of the chart has also turned more negative to counter any hope for an imminent shift upward in the data."