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Growth anemic, debt fight poses recession risk

Posted By admin On July 29, 2011 @ 8:29 am In Money Watch | Comments Disabled

Lucia Mutikani
Reuters [1]
July 29, 2011

(Reuters) – The U.S. economy stumbled badly in the first half of 2011 and came dangerously close to contracting in the January-March period, raising the risk of a recession if a stand-off over the nation’s debt does not end quickly.

The Commerce Department data on Friday also showed the current lull in the economy began earlier than had been thought, with the growth losing steam late last year.

That raised questions on the long held view by both Federal Reserve officials and independent economists that the slowdown in growth this year was mostly due to transitory factors.

“The economy essentially came to a grinding halt in the first half of this year,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester Pennsylvania. “We did get side-swiped by some temporary factors which are fading, but it raises some concerns about the sustainability the recovery.”

Full story here. [1]

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URL to article: http://www.prisonplanet.com/growth-anemic-debt-fight-poses-recession-risk.html

URLs in this post:

[1] Reuters: http://www.reuters.com/article/2011/07/29/us-usa-economy-idUSTRE7662I420110729

[2] IMF Says Government Debt Poses Biggest Risk to Growth: http://www.prisonplanet.com/imf-says-government-debt-poses-biggest-risk-to-growth.html

[3] Economy heads for recession as growth slumps: http://www.prisonplanet.com/economy-heads-for-recession-as-growth-slumps.html

[4] US Will Hit 94% Debt to GDP Ratio Next Year, Surpassing the Level Where Debt Starts Reducing Economic Growth: http://www.prisonplanet.com/us-will-hit-94-debt-to-gdp-ratio-next-year-surpassing-the-level-where-debt-starts-reducing-economic-growth.html

[5] Fed Officials Warn of Recession Risk: http://www.prisonplanet.com/fed-officials-warn-of-recession-risk.html

[6] IMF warns of Great Recession, Africa at risk: http://www.prisonplanet.com/imf-warns-of-great-recession-africa-at-risk.html

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