US economy enters recession ââââ

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January 20, 2008/Punch

 

The employment report last week proved that the United States economy entered its first recession since 2001, according to Merrill Lynch & Company’s David Rosenberg.

 

“Friday’s employment report confirmed our suspicions that the economy was transitioning into an official recession towards the end of last year,” New York-based Rosenberg, North American economist at the world’s biggest brokerage, wrote in a note dated January 7.

 

Hiring in the US slowed more than forecast in December and unemployment jumped to a two-year high, the Labour Department had said on January 4.

 

According to Bloomberg News, payrolls rose by 18,000, capping the worst year for job creation since 2003, and the jobless rate increased to five per cent from 4.7 per cent in November.

 

The world’s largest economy grew at a one per cent pace in the fourth quarter after expanding at a 4.9 per cent rate the previous three months that was the strongest since 2003, according to the median estimate of economists surveyed last month.

 

Growth for all 2008 was projected at 2.3 per cent.


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