Tuesday Jun 26, 201205:38 PM GMT
S&P says US faces 20-percent risk of double dip recession
Tue Jun 26, 2012 5:36PM
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The United States faces 20-percent odds of a return to recession, rating agency Standard & Poor's said on Tuesday.

 

“The risk of another downward leg on the recession remains real," the agency said in a statement.

 

While S&P said it could be underestimating American consumers, years of stagnation, as Japan has seen, could also occur.

 

"There are differences between Japan's situation and the current one in the U.S., but the problems are similar," said Beth Ann Bovino, a senior S&P economist, in the statement. "Our hope is that policymakers in the U.S. have learned from Japan's mistakes."

 

The agency cut the U.S. sovereign rating to AA-plus last year in a contentious move that drew loud protests from the government. Moody's Investors Service rates the United States Aaa, and Fitch rates the country AAA. All three ratings carry a negative outlook. Chicago Tribune

 

FACTS & FIGURES

 

Gallup's Economic Confidence Index was -26 for the week ending June 24, down from -24 the week before. Americans' confidence has now receded for four straight weeks, and is at the lowest point since late January.

 

Americans' perceptions of current economic conditions worsened to -31, down four from the previous week, with 44% saying the economy is poor. Gallup

 

Job growth in the United States slowed sharply for a third consecutive month in May and the unemployment rate rose for the first time in nearly a year. Bloomberg

 

When it comes to the economy, half of Americans in a new poll say it won't matter much whether Barack Obama or Mitt Romney wins - even though the presidential candidates have staked their chances on which would be better at fixing the economic mess. whec.com

 

AHT/HJ

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