This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7733092.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
US economy 'already in recession' US economy 'already in recession'
(about 5 hours later)
The US economy is already in recession, according to a panel of economic forecasters, and is set to shrink at a pace of 2.6% in the fourth quarter. The US economy is already in recession, according to two separate surveys.
Analysts surveyed by the National Association for Business Economists (NABE) also expect the recession to continue into 2009. Analysts surveyed by the National Association for Business Economists (NABE) said the recession was set to continue into 2009.
They also predicted the economy would shrink at a rate of 2.6% in the fourth quarter of the year, giving an annual growth rate of 0.2% for 2008 overall.
A separate survey from the Philadelphia Federal Reserve Bank survey said the recession would last for 14 months.
The US economy contracted at an annual rate of 0.3% from July to September, according to preliminary official data.The US economy contracted at an annual rate of 0.3% from July to September, according to preliminary official data.
The NABE survey polled 50 private professional forecasters.
"Business economists became decidedly more pessimistic on the economic outlook for the next several quarters as a result of the intensification of credit market stresses," said NABE President Chris Varvares, who is also the president of Macroeconomic Advisers.
On Monday, Japan became the latest economy to fall into recession - reporting a second successive quarter of negative growth. Figures out on Friday showed that the eurozone was also now in recession.On Monday, Japan became the latest economy to fall into recession - reporting a second successive quarter of negative growth. Figures out on Friday showed that the eurozone was also now in recession.
Worsening outlookWorsening outlook
The NABE survey polled 50 private professional forecasters.
"Business economists became decidedly more pessimistic on the economic outlook for the next several quarters as a result of the intensification of credit market stresses," said NABE president Chris Varvares, who is also the president of Macroeconomic Advisers.
The NABE study found 96% of respondents believed the US economy was already in recession.The NABE study found 96% of respondents believed the US economy was already in recession.
The predicted 2.6% pace of contraction in the fourth quarter would give an annual growth rate of 0.2% for 2008 as a whole. The economists also predicted that the economy would shrink at a pace of 1.3% in the first quarter in 2009, and would grow by just 0.7% over the year as a whole.
The economists also predict the economy will shrink at a pace of 1.3% in the first quarter in 2009, and will grow by just 0.7% over the year as a whole.
In the last month's survey forecasters expected the US economy to grow 0.1% in the last three months of 2008 and expand by 1.3% in the first quarter of 2009.
"Despite the hefty liquidity injections by the Fed and the Treasury, the majority of NABE panelists believe that tight credit conditions will continue," Mr Varvares said."Despite the hefty liquidity injections by the Fed and the Treasury, the majority of NABE panelists believe that tight credit conditions will continue," Mr Varvares said.
The NABE survey predicts the unemployment rate could peak at 7.5% by the third quarter of 2009 compared with the current 14-year record high of 6.5%. The NABE survey predicted the unemployment rate could peak at 7.5% by the third quarter of 2009 compared with the current 14-year record high of 6.5%.
The survey indicates that President-elect Barak Obama will face a tough challenge to revive the economy when he takes office. According to a quarterly survey of professional forecasters by the Philadelphia Federal Reserve Bank, the US economy went into a recession in April this year that will last for 14 months.
The surveys indicate that President-elect Barak Obama will face a tough challenge to revive the economy when he takes office.
On Saturday, Mr Obama urged Congress to take immediate steps to tackle the US economic crisis.On Saturday, Mr Obama urged Congress to take immediate steps to tackle the US economic crisis.
Speaking in a Democratic Party radio and online address, he said action should be taken "right now" to alleviate the pain of millions of working Americans.Speaking in a Democratic Party radio and online address, he said action should be taken "right now" to alleviate the pain of millions of working Americans.