Recession signals not clear, economists say
August 18, 2011, 2:13 PM
Are we headed toward recession? Even after Thursday’s plunge in stocks, some economists still aren’t sure.
Neil Dutta, economist at Bank of America/Merrill Lynch BAC, noted that the Philadelphia Federal Reserve report was abysmal, saying it “fell off the proverbial cliff” when the index fell to -30.7 from +3.2. See related story.
But Dutta isn’t willing to throw in the towel on the economy just yet.
“We are not ready to say this is the death knell for the U.S. economy,” Dutta said in a note to clients. “Thus far, real economy data (not sentiment) appear to be holding up.”