While not as frequently cited as the bond market or household spending, some economists and executives have pointed to such informal indicators as signs that a downturn could be on the horizon.
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00:00Are we about to be in a recession? Here are some signs to look out for besides the stock market
00:05that may tell us if a recession is nearing. There is evidence that people buy fewer snacks
00:10when a recession is about to hit. I, for example, just realized I actually have no snacks in my
00:15house. General Mills reported last week that their sales have fallen by 5% and even their snacks for
00:22pets were done in sales. Another theory is that instead of full-size liquor bottles, people go
00:28for those tiny airplane-sized ones when they're concerned about money. And the company that
00:33produces Jack Daniels has said that their sales of small bottles are rising. Interestingly,
00:39lipstick sales tend to go up when the economy goes down as people reprioritize their finances.
00:45Consumers seem to think lipstick is an affordable luxury. The men's underwear index is weird but
00:51real. When guys hold on to old underwear longer than usual, economists say it's a sign they're
00:57cutting back on spending. The Hemline Index, developed in the 1920s, also says that skirts
01:03are shorter when the economy is doing well and get longer during a downturn. Okay, now obviously
01:08some of these theories have flaws and none of them are definite signs of a recession approaching.
01:13To read more potential signs of recession like the Diaper Rush Index or the Stripper Index,
01:18head to our article at businessinsider.com.