Chart of the Month | Economic Expansions Getting Longer

August 1, 2019 |
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Following the July FOMC meeting and with investors digesting the first rate cut since 2008 it is important to recognize that the domestic economy is now experiencing the longest period of economic expansion since 1850. In the modern era (1945-2009) the average period of economic growth was 58.4 months. As of July 2019, the current expansion now stands at 121 months. Interestingly, while the periods of growth have gotten longer…periods of contraction have gotten shorter. For the same time period discussed previously the average contraction was just 11.1 months – much shorter than previous economic cycles. We can’t say for sure what is driving this phenomenon, although the Fed is hoping that it’s a sign they are improving at their attempts to stay ahead the inevitable shifts in the economy. See the National Bureau of Economic Research for more information.

Chart of the Month - Longest Economic Expansion on Record

Ryan Driscoll

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Ryan Driscoll

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