{"id":11390,"date":"2025-09-22T11:49:09","date_gmt":"2025-09-22T11:49:09","guid":{"rendered":"https:\/\/bitunikey.com\/news\/ubs-recession-probability-in-the-u-s-is-93-a-historically-worrying-level\/"},"modified":"2025-09-22T11:49:15","modified_gmt":"2025-09-22T11:49:15","slug":"ubs-recession-probability-in-the-u-s-is-93-a-historically-worrying-level","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/ubs-recession-probability-in-the-u-s-is-93-a-historically-worrying-level\/","title":{"rendered":"UBS: Recession probability in the U.S. is 93% \u2014 a \u201chistorically worrying level\u201d"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<div id=\"cn-block-summary-block_f947312134b96cb54830dd610ff8acef\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>UBS warns the recession risk in the U.S. has reached 93%. However, instead of a collapse, analysts predict a \u201csoft landing.\u201d<\/li>\n<li>Cooling on the labor market, building permits drop, shrinking GDP, and consumer spending amidst the tariff policy uncertainty contribute to the high probability of recession. That\u2019s what various experts have been saying for months.<\/li>\n<li>While some people got accustomed to constant recession \u201cfear mongering,\u201d others reacted to the UBS report by saying that the recession had already begun.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p class=\"is-style-lead\">Analysts from a Swiss investment bank, UBS, warn that the recession risk has elevated to 93% in the U.S. Their findings are based on May-July \u201chard data.\u201d Interestingly, UBS emphasizes it doesn\u2019t forecast a recession. Rather, it foresees the prolonged 70s-style stagflation in the near future. However, X is buzzing that the recession is already here, and experts just avoid calling it by that name.<\/p>\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\">\n<p>Table of Contents<\/p>\n<nav>\n<ul>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"#the-ubs-analysis\">The UBS analysis<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"#what-do-other-experts-say\">What do other experts say?<\/a><\/li>\n<li><a rel=\"nofollow\" target=\"_blank\" href=\"#reactions\">Reactions<\/a><\/li>\n<\/ul>\n<\/nav>\n<\/div>\n<h2 class=\"wp-block-heading\" id=\"the-ubs-analysis\">The UBS analysis<\/h2>\n<p>The UBS analysis is based on objective figures. It doesn\u2019t factor in survey-based and sentiment-driven data. Instead, the study is rooted in metrics like income of individuals, employment level, production and consumption figures, etc. The bank collected the data from the National Bureau of Economic Research. Market signals were not used for this study.\u00a0<\/p>\n<p>UBS characterized recession risk levels as \u201celevated\u201d and \u201chistorically worrying.\u201d The bank stresses that metrics don\u2019t display signs of quick collapse. Rather, it is a gradual sliding into a slow economy. The main reasons for alarm are the inverted yield curve going up sharply throughout 2025 and the growing pressure on credit markets. The credit data-based recession risk chances grew to 41% which is twice as high as in January.<\/p>\n<p>Despite the fact that the data is showing a high risk of recession, the bank analysts believe that America is facing a different scenario. According to UBS, the U.S. economy will likely slide into \u201cstagflation,\u201d which is the mix of growing inflation and economic stagnation.\u00a0<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Anyone who disagrees must be oblivious to:<\/p>\n<p>\u2013 $37 trillion deficit<br \/>\u2013 $1 trillion annual interest to debt<br \/>\u2013 Trade wars<br \/>\u2013 Elevated consumer loan delinquencies<br \/>\u2013 Job market weakening<br \/>\u2013 Domestic and international political instability<\/p>\n<p>We&#8217;re in a bad position boys and girls.<\/p>\n<p>\u2014 Mario (@1293_roger) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/1293_roger\/status\/1967053655196196969?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">September 14, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The reasons for the pessimistic outlook include the low employment rate revealed in July. In August, the unemployment rate for most categories of Americans <a rel=\"nofollow\" target=\"_blank\" target=\"_blank\" href=\"https:\/\/www.bls.gov\/news.release\/pdf\/empsit.pdf\" rel=\"nofollow\">continued<\/a> to grow. August added 22,000 jobs against 75,000 predicted. Earlier, JPMorgan experts <a rel=\"nofollow\" target=\"_blank\" target=\"_blank\" href=\"https:\/\/fortune.com\/2025\/08\/02\/jobs-report-recession-warning-labor-demand-economic-outlook-ai-unemployment\/\" rel=\"nofollow\">\u201chinted\u201d<\/a> that the commercial use of AI could contribute to the growing number of layoffs. Improvement may follow in 2026.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\" id=\"what-do-other-experts-say\">What do other experts say?<\/h2>\n<p>UBS analysts are not the only ones to offer an alarming forecast for the U.S. economy in 2025. Based on the declining labor market, Moody\u2019s chief economist Mark Zandi warns that the country is on the brink of a recession. According to him, <a rel=\"nofollow\" target=\"_blank\" target=\"_blank\" href=\"https:\/\/www.newsweek.com\/economy-brink-recession-mark-zandi-2122414\" rel=\"nofollow\">the end of the year<\/a> may be the moment of sliding into recession. Zandi\u2019s colleague from Comerica Bank, Bill Adams, notes that slow growth is not a recession.<\/p>\n<p>On Sep. 14, Zandi took to X to share the data showing the U.S. reached the pandemic-era lows for building permits. Zandi notes that dropping permits usually signals a recession. He said that in this situation, cutting interest rates is much needed.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Building permits have been identified as the most critical economic variable for predicting U.S. recessions, according to Moody\u2019s new leading economic indicator built using a machine learning algorithm. And while permits had been holding up reasonably well, as builders supported\u2026 <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/nEulWlGCTu\">pic.twitter.com\/nEulWlGCTu<\/a><\/p>\n<p>\u2014 Mark Zandi (@Markzandi) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/Markzandi\/status\/1967277820045865206?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">September 14, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The new <a rel=\"nofollow\" target=\"_blank\" target=\"_blank\" href=\"https:\/\/www.cbo.gov\/system\/files\/2025-09\/61236-Economy.pdf\" rel=\"nofollow\">CBO report<\/a> is blaming Donald Trump\u2019s tariffs, crackdown on immigration, and Big Beautiful Bill for the drop in economic growth in 2025. The report forecasts an increase in unemployment and inflation rates. More than that, the report warned about the imminent decline in consumer spending and the GDP drop. If the GDP declines for two quarters, the recession is confirmed.<\/p>\n<h2 class=\"wp-block-heading\" id=\"reactions\">Reactions<\/h2>\n<p>UBS notably tried to stress that such a high risk of a recession doesn\u2019t mean that the U.S. economy is about to collapse. While the 93% figure looks like recession is inevitable, the factors that were not taken into consideration may help the U.S. stay on the brink of recession. It doesn\u2019t mean the U.S. won\u2019t have a tough time. Rather, it means that probably the American economy will have positive but extremely low growth rates.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">How convenient. Once the recession begins, project 97% chance \ud83d\ude02\ud83e\udd23\ud83d\ude02<\/p>\n<p>Bro, we\u2019re already in recession.<\/p>\n<p>\u2014 LostInBogota (@MyPronounsRFOff) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/MyPronounsRFOff\/status\/1963432733553709472?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">September 4, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>However, the people all around the X are not buying UBS\u2019s delicate approach to the recession probability. Here and there, they voice their conviction that the recession has already begun.\u00a0<\/p>\n<p>Some of them even call the situation <a rel=\"nofollow\" target=\"_blank\" target=\"_blank\" href=\"https:\/\/x.com\/_macroanalyst\/status\/1966160914417062256\" rel=\"nofollow\">\u201can economic serfdom,\u201d<\/a> suggesting that the system is built to keep millennials and Gen Z being \u201crenters for life.\u201d People cite the growing prices and hesitation to buy a house as signs that things are really getting out of hand. Others cite UBS\u2019s strong reputation as the reason to believe that the situation is really taking an ugly turn.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\ude02A recession is coming in 2022\u2026wait 2023\u2026 no 2024\u20262025\u2026. I mean by 2030 it will be here!<\/p>\n<p>\u2014 Vital Signs (@jgpuck99) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/jgpuck99\/status\/1963079623702700527?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">September 3, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>However, we hear about another recession at the gates way more often than we are witnessing it. It makes some people downplay UBS\u2019s findings by saying that they hear that the recession is about to hit every year.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Summary UBS warns the recession risk in the U.S. has reached 93%. However, instead of a collapse, analysts predict a \u201csoft landing.\u201d Cooling on the labor market, building permits drop,&hellip;<\/p>\n","protected":false},"author":1,"featured_media":11391,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/11390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=11390"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/11390\/revisions"}],"predecessor-version":[{"id":11392,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/11390\/revisions\/11392"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/11391"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=11390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=11390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=11390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}