Economists express concern about double-dip recession
The chances of another U.S. recession are rising, Reuters reported, according to the news organization’s latest poll.
The survey of more than 200 economists, published four years to the day after credit markets first started to dry up, showed analysts cutting forecasts for U.S. growth, a reflection of widespread concern that the global economy is slowing rapidly.
Punishing losses in world financial markets, following Standard & Poor’s downgrade of U.S. debt, suggest sentiment has soured.
Economists’ consensus for 2.3 percent annualized U.S. growth in the current quarter, down from an original forecast of 3.1 percent, will not be enough to turn around the labor market. The forecasts came hours before the Federal Reserve met to set policy.
The poll found that economists think the probability the United States will sink into a second recession has risen to one-in-four, from one-in-five just a month ago.
“The world doesn’t look particularly rosy at the moment. There’s no question about that,” said Mark Miller, senior international economist at Lloyds Banking Group, in an interview with Bloomberg.