The long-awaited recession in the US has not yet begun, and economists are becoming more and more optimistic about the future of the economy, writes Yahoo Finance.
Wells Fargo analysts predict that the recession may not begin until 2024 given that recent economic data shows a resilient economy “not yet on the brink of recession.”
“Although we still expect the effects of monetary tightening and less credit availability to dampen economic growth, the economy has proven to be more resilient than we anticipated,” the bank’s team of analysts said. “As a result, the forecast for the start of the economic contraction is in the first quarter of 2024.”
Wells Fargo is not the only institution becoming more optimistic about the outlook for economic expansion in 2023. Goldman Sachs cut the probability of a recession from 35% to 25% earlier this week. At the same time, the chief economist of Bank of America explained that the economy could experience only a slight recession.
The new outlook came after data on the US labor market proved to be “resilient”. Thus, the American economy added 339,000 jobs in May, the largest monthly increase since January. All while consumers continue to spend despite persistent inflation.
2023-06-11 12:13:00
#economists #entering #recession
