US economy proves strong enough ‘to keep recession at bay'

By: Trademagazin editor Date: 2022. 08. 03. 11:03

Despite two consecutive quarters of decline, the U.S. economy still does not appear to be in a recession and remains unlikely to enter one this year, National Retail Federation chief economist Jack Kleinhenz said on Tuesday.

Leading retail association has reaffirmed its confidence in the U.S. economy

Kleinhenz noted that while back-to-back contractions have heightened fear of a recession and the economy has lost momentum heading into the second half of the year, economic data is not yet consistent with a typical recession.

“Our view is that while the economy is functioning at a slower pace it is likely to avoid a recession this year,” he said. “Despite ongoing uncertainties, we believe the underlying strength of the economy is strong enough to deal with inflation and keep a recession at bay – or short-lived even if we are wrong.”

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