US Economy May Avoid Recession But Slow Growth Seen

Reuters (07/21/08); Morrison, Joanne
The problems in the housing market and tighter credit continue to have a negative impact on U.S. businesses, according to the latest quarterly survey from the National Association for Business Economics. However, only 29 percent of respondents for the June 19 through July 10 survey expect the housing market to slow down significantly over the next six months, compared with 45 percent in April. Companies are facing higher material costs that will cut into their profits; but, overall, economists are more optimistic about the economy than they were in the April survey.