Economists in the private sector in the US believe that the economy fell into recession in the spring and now predict a sharp contraction in the fourth quarter of this year according to a Federal Reserve Bank of Philadelphia survey released this morning. They have slashed their forecasts for gdp.
The “Survey of Professional Forecasters” also predicted that non-agricultural employment would shrink by an average 222,400 jobs per month during the last quarter of this year, almost five times the pace predicted when the previous survey was taken in August 2008.
The forecasters survey also said the U.S. economy entered recession April and that the downturn would last for 14 months until June 2009. This all points to a rocky start for the new president Barrack Obama but with recovery beginning within 6 months of his tenure suggests a prolonged ‘honeymoon’ for the new commander in chief!