Tuesday, January 22, 2008

Quick Takes: 3 out of 4 Americans see recession in ‘08

What a difference a month makes. A mere 43% of Americans expected a recession in December; this figure is now up to 75%. In the survey by Fortune, 19 percent believe the nation is already in a recession – they are most likely right.

In response, many Americans have cut back on spending. This is of great concern because it has been consumer spending which has held up the economy. The survey results were ‘far gloomier outlook than economists anticipated’.

‘"Those are pretty striking results, a pretty stark assessment," said Dean Baker, who is the co-director of the Center for Economic and Policy Research, and one of the economists who believes that the nation may have slipped into a recession in December. He said that if Americans are this worried about the economy, it could cause an even sharper downturn than many economists expect.’