The US economy faces a one-in-three chance of sliding into recession in the next 12 months, credit ratings agency Standard and Poor’s has warned, as a series of economic signals flash red.
The “spectre of global recession” is stalking the world economy as the trade war bites in the US, China slows, the eurozone is on the brink of contraction and central bankers have little support to offer, economists have warned.
Businesses in the US are increasingly scared of making big investments, while tariffs are starting to drain consumers’ spending power and exports are struggling. US industrial production slid 0.4pc on the month in July, joining the wider industrial slump.
“We are now very much on recession watch,” said economist Michelle Meyer at Bank of America Merrill Lynch, warning that “policy mistakes” are a classic cause of recessions, and the tariff war may be just that.
“The trade war is a slow-motion train wreck and the wounds from the Great Recession are still fresh.”
https://www.telegraph.co.uk/business...bal-recession/
Fake news! Trade wars are easy to win! S&P and Bank of America are enemies of the people!
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