Added by Monique Robinson on September 9, 2010
The Huntington Bank has just released a new US economic forecast. Senior economist at Huntington Bank, George Mokrzan, said that the economy in the United States still presents certain vulnerability, but that another economic fall isn’t so likely since the slow growth of the economy has proven to continue in 2010 and is expected to accelerate next year.
Mr. Mokrzan thinks that a double dip recession chance is down to 26 per cent at the current time: ‘The economy is especially vulnerable when it comes to additional negative economic shocks, whether they come from credit markets, the geo-political environment, the policy environment or other unforeseeable areas’.
The forecast also brings good news for businesses within the US, as company profits have nearly achieved a new record high. Powerful growths have been recorded in both non-manufacturing and manufacturing sectors and Mr. Mokrzan also stated that sales in software and info processing equipment rose exponentially by 63 per cent, compared to the technology boom back in 2000.
With regard to the real estate market and consumer spending, statistics show that interest rates remain low while housing prices have been improving. However, Mr. Mokrzan feels that consumer spending is still sluggish because of the low labor demand.