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Business Cycle Intelligence

Global Cycle Monitor

Pulse shows the current economic signal. Direction shows the economic outlook for the next 1–6 months — a probabilistic forward signal, not a forecast. Beyond six months this read is not distinguishable from the long-run base rate.

Direction leans toward a slowdown call more often than a slowdown actually follows — read it as a lean to watch, not a high-confidence call.

As of 2026-07-31

The US economy is currently in its expansion phase, holding in expansion over the next 1–6 months. This describes where the cycle stands today — risk context, not a forecast or a recommendation. Beyond six months this read is not distinguishable from the long-run base rate.

ExpansionPeakContractionTrough
Pulse— where the economy stands today
EXPANSIONPEAKCONTRACTIONTROUGHPULSE33%CONFIDENCE

Expansion

Direction— where it's heading in 1–6 months
EXPANSIONPEAKCONTRACTIONTROUGHDIRECTION51%CONFIDENCE

Holding in Expansion

Show the indicators behind this signal

What's driving this reading?

Economy growing above trend. Labour markets tightening, credit conditions easing, and industrial output rising across key sectors.

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Government Catalysts

Defense & AerospaceClean EnergyTechnology

Sector

Descriptive — how each sector has historically behaved by cycle phase. Context, not investment advice.

Now — how sectors behaved in expansion

LedInformation Technology
LedEnergy
LedIndustrials
MixedFinancials
MixedHealth Care
MixedMaterials
MixedUtilities
MixedConsumer Discretionary
LaggedReal Estate
LaggedCommunication Services
LaggedConsumer Staples

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Forward — historical behaviour into the next phase

LedEnergy
LedMaterials
LedFinancials

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Asset Class

Descriptive — how each asset class has historically behaved by cycle phase. Context, not investment advice.

Now — how asset classes behaved in expansion

LedUS Equities
LedGold
MixedHigh Yield Credit
MixedCommodities
MixedIG Credit
LaggedBroad Bonds
LaggedLong Duration Govts

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Low vote concentrationPhase indicators are mixed for this period. This figure is how much of the weighted vote landed on the phase being shown. It is not the chance the call is right — in nine of ten markets a higher figure has not meant more often correct.
Chance of a downturn · next 1–6 months6%against a long-run 17% for this market

the chance this market is in contraction or trough at some point in the next one to six months, measured on its own history.

Published with this market's own track record, because the skill differs by market and one global claim would be false somewhere. On this market's history it ranked the months correctly 83% of the time over 265 months.

How durable this expansion looks94%chance it is still an expansion in 1–6 months

On this market's own record a typical expansion has about 43 months left from here.

How far through a typical expansion this market is, and how often expansions this mature have run on. This is context on where the cycle stands, not advice about what to hold.

Based on a small number of completed expansions in this market, so treat the typical length as indicative rather than precise.

Track record here95%of 391 months agreed with the official record, against 88% for never calling a downturn — 7pp better.

Read against the market's own base rate, not against 100%. Because downturn months are a minority, always saying "no downturn" already scores highly — the figure that matters is how much better than that this read has done.

US Cycle History — 2025 to 2026 (12 months)

Algorithmic classifier (Pulse signal)

NBER official recessions

expansion
peak
contraction
trough
NBER recession

Red: NBER official recessions. Dated retrospectively with a lag — not real-time.

Showing the last 12 months.Create a free accountto see the full history.

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