Economic indicators can offer valuable insights into potential recessions. One such indicator is the inverted yield curve, where short-term interest rates surpass long-term rates. This phenomenon often precedes downturns. Another warning sign is declining consumer confidence, as people become hesitant to spend money on non-essential items. The housing market also plays a crucial role, with a slowdown in home sales and declining prices indicating a weakening economy. Rising unemployment rates and stagnant wage growth are additional red flags. Additionally, a contraction in manufacturing and declining business investments suggest a recession may be on the horizon. By monitoring these signals, individuals and policymakers can better prepare for economic downturns.