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
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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