Fears of US double-dip recession recede

[alp227]

Source: Financial Times

In normal times, a reading of 51.6 on the Institute for Supply Management’s gauge of US manufacturing activity would hardly merit any cheers, since it indicates that the industrial sector is barely avoiding contraction.

But there was some reason for comfort on Monday after the September data – which unexpectedly jumped from 50.6 in August – confirmed that the American economy was still afloat and defying fears of a double-dip recession.

The components of the index were rather mixed. While new orders remained flat, signalling that demand is lacklustre, production levels jumped. So did employment, which could bode well for the September jobs report due out from the US labour department on Friday. Economists are expecting a small rebound in job creation in the US economy after a flat August, and the ISM data will support that view.

“The hard data (are) more consistent with limping forward than falling back,” says Neal Soss, a senior US economist at Credit Suisse in New York. “I would continue to hold to the view that we are more likely to have unsatisfyingly slow growth than a new recession,” he adds.

Read more: http://www.ft.com/cms/s/0/bb4fe0c0-eddd-11e0-a491-00144feab49a.html

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Google the article to read in full.

[Arctic Dave]

1. How long before these numbered are re-adjusted downwards.

Smoke and mirrors.

[kickysnana]

2. Naw we are just in the denial phase....n/t

[Fearless]

4. Agreed. If we don't call it what it is it goes away right?

[stockholmer]

3. pure bollocks,I'll file this w/ Jim Cramer's call to buy Morgan Stanley this morning (7% down today)

[Roland99]

5. Cramer's such an idiot. "Could Morgan Stanley Go Belly Up?"

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x5013790#5014006

[burf]

7. I saw the segment where Cramer was

"explaining" his previous comments and how he was sure the stock would go up. His facial expressions though did not seem to reinforce the narrative.

[Owlet]

6. Do economists take a course

in self-delusion and public falsehood, or do they come by this ability naturally? Seriously, they take that which is driven by opinion, fear, greed, sore bunions and wool of bat and concoct this pseudo-rational explanation that is supposed to sound as though they know what they're talking about. Phew. (I get winded after long sentences like that).

Europe is going into the shitter. Everyone who is paying the slightest bit of attention can see that. Even if U.S. banks had no exposure to European sovereign debt (and they do, of course) our economy will feel the effects of any major economic disruption in Europe.

[Safetykitten]

8. Ya know...at this point, are they really credible? Any happy-happy joy-joy economist?