Greenspan Forecasts a `Pronounced' Recovery on Productivity, Inventories

[Purveyor]

By Steve Matthews and Millie Munshi

Sept. 9 (Bloomberg) -- The U.S. economy will start to pull out of a recession by yearend, helped by “remarkable growth” in productivity and a depletion of inventories, former Federal Reserve Chairman Alan Greenspan said.

“A lot of pieces are falling into place for recovery,” Greenspan said in a speech in New York. He predicted “a fairly pronounced recovery not only in the U.S.,” but globally. “Surprises are on the upside.”

Greenspan last month said the U.S. economy could resume growth with a 2.5 percent expansion in the current quarter, while adding there was still a risk of a “second wave down.”

The world’s biggest economy contracted at a 1 percent annual pace in the second quarter and economists surveyed last month by Bloomberg News predicted growth would average 2.1 percent in the second half of the year.

Stabilization of housing markets and manufacturing, a lessening of financial turmoil and increased government spending all suggest the longest recession since the 1930s may be close to ending. Fed Chairman Ben S. Bernanke said last month the U.S. economy was “leveling out” and may resume growth “in the near term.”

Productivity is helping the recovery, Greenspan said at Rodman & Renshaw’s annual global investment conference. The economy is still laden with “excess inventories” that may be worked off by the end of the year, he said.

More...

BLOOMBERG: http://www.bloomberg.com/apps/news?pid=20601087&sid=amOV7FO9A_2I

[Frustratedlady]

1. Don't tell the Repugs. They'll all have strokes and need medical care.

Then, Obama will get blamed because he didn't have his healthcare system in place.

[Romulox]

2. Recovery for WHOM? Productivity gains haven't been shared with workers in 30 years...

:shrug: