We recently published ‘The Most Important Charts In The World’ according to some of the top financial minds.
And Deutsche Bank’s Joe LaVorgna pointed us in the direction of federal deposits. He said he tracks this chart since the federal government is always collection payroll taxes thus giving us a real-time measure of labour market health.
What’s more, unlike most economic data, tax receipts aren’t revised. The latest data for the current quarter shows receipts growing 6 per cent year-over-year.
“By no means is the economy booming, but continued labour income growth similar suggests that a recession is not imminent. We will be watching to see if the upcoming employment data corroborate this view.”