Dec 31 2007
Economy Continues to Slow, Recession Unlikely for 2008
The fallout from the housing slump and the so-called “credit crunch” will prove less severe than many fear, said Wells Fargo’s senior economists during the company’s annual economic forecast teleconference earlier this week.
“Healthy export growth and continued business spending will help the economy steer clear of an outright recession, but I believe that won’t be significant enough to prevent an economic slowdown in 2008,” said Dr. Scott Anderson, senior economist for Wells Fargo & Company. “Rapidly cooling earnings growth and rising economic uncertainty will make U.S. companies reluctant to undertake ambitious expansion plans in 2008.”