Looks like some aren’t buying into doom and gloom predictions for the future of our economy…
- Analysts at JPMorgan Chase and Barclays are optimistic about the U.S. economy rebounding in late 2009.
- Causes for optimism include increased consumer confidence, an improved credit environment, and government stimulus funding – all of which should increase spending and bolster the housing market.
- Others aren’t so sure – Deutsche Bank predicts the economy will continue to get worse through the end of 2009. And according to Credit Suisse, rising unemployment and lower salaries will mean that any short-term improvements will soon give way to another contraction in consumer spending.
Facts & Figures
- The U.S. economy shrank at a rate of 6.1% in the beginning of 2009 – the worst contraction since the recession of 1957-58.
- Consumer spending represents 70% of the U.S. economy.
- JP Morgan and Barclays predictions for the rest of 2009: Continued contraction of 2% in the 2nd quarter, growth at 1% rate in 3rd quarter, and an increase to 2% growth rate in 4th quarter.
Best Quote
“We’re probably hitting the bottom around now.” – Larry Kantor, Head of Research at Barclays