A recession indicator is a statistic that signals the onset of an economic recession, or contraction. Recession indicators are typically broad-based measures such as real gross domestic product (GDP), employment numbers, industrial production and consumer sentiment. They provide early warning signs of a potential recession by tracking macroeconomic forces like consumer confidence and business spending, as well as financial imbalances like liquidity and interest rates. By tracking these important trends which can affect the economy, investors, businesses, and governments can make informed decisions to minimize economic losses.