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Leading Economic Indicators Continue to Rise


Thursday, February 18th, 2010

Over the last six months, fears have been rising around the globe that current recession could be what is known as: a double dip recession. This is where the economy will begin to recover, then immediately go into another recession. A good example of this can be seen in the time period between 1978 and 1982; when the world economy experienced such a situation. In spite, of these different worries, a barrage of economic numbers continues to show that this type of scenario will not take place. The latest evidence of this; can be seen with the leading economic indicators for January. Where, for tenth month in a row the number has continued to point to steady improvements in the economy, as the January reading came in up .3%. This follows a revision to the December number of 1.4%.

When you put these different numbers in a larger context, it is clear that they are saying that the economy has stabilized and is slowly recovering. This has been taking place since the middle of the last year. Based on the latest reading, it is indicating that the improvements in the economy will continue to be seen into next year. Indicating, that the concerns about a double dip recession are unfounded; what will more than likely happen is a period of slow recovery, with little to no job growth in the first part of the year. Then, in 2011, is when you will see the full economic recovery take shape.

 



Article by Chris Seabury

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com