Bank of America: Slump may be looming for US

A recession looms in 2017 if the US economy maintains its course, according to Bank of America Merrill Lynch.

Some of the bank’s favourite early-warning signs are signalling “evidence of an imminent recession,” according to a team led by head of US equity and quantitative strategy Savita Subramanian.

“While the range of signals is wide, in aggregate they do suggest that, if data were to continue to weaken in line with the recent pace, history would point to a recession in the second half of 2017,” she said.