Geithner Says Chances of Double-dip Receding

He noted that productivity growth had been excellent, auguring well for future expansion, but that parts of the U.S. economy ‘still look very tough’ with unemployment and the housing market still bad.

Treasury Secretary Timothy Geithner said on Nov. 8 that the economy was starting to pick up and that chances of a “double-dip” recession were lower than at any time in the last 12 months.

“Things are gradually getting stronger in the U.S.,” Geithner told a business audience in New Delhi, where he was accompanying US President Barack Obama on an official visit.

“Chances of a double-dip recession look lower than they have been over the last three, six to 12 months,” he said. “The risks are diminished.

“The basic tone of the numbers suggest some modest strengthening of growth,” he said.

Geithner’s comments came after  figures earlier in the month showed the country experienced a mini-jobs boom in October, snapping a four-month streak of payroll losses. The Labor Department reported a surprising 151,000 non-farm jobs were added in October, although the addition was too weak to dent the high unemployment rate which remained unchanged at 9.6% for the third month in a row.

The U.S. has recovered once from recession, but economists have expressed fears it could again begin contracting — known as a “double-dip” recession.

Geithner said productivity growth had been excellent, auguring well for future expansion, but that parts of the U.S. economy “still look very tough” with unemployment and the housing market still bad.

The treasury secretary did not comment directly on the Federal Reserve’s decision last week to pump an extra $600 billion into the economy to bolster the nascent recovery, saying it was an independent financial institution.Treasury Secretary Timothy Geithner said on Nov. 8 that the economy was starting to pick up and that chances of a “double-dip” recession were lower than at any time in the last 12 months.

“Things are gradually getting stronger in the U.S.,” Geithner told a business audience in New Delhi, where he was accompanying US President Barack Obama on an official visit.

“Chances of a double-dip recession look lower than they have been over the last three, six to 12 months,” he said. “The risks are diminished.

“The basic tone of the numbers suggest some modest strengthening of growth,” he said.

Geithner’s comments came after  figures earlier in the month showed the country experienced a mini-jobs boom in October, snapping a four-month streak of payroll losses. The Labor Department reported a surprising 151,000 non-farm jobs were added in October, although the addition was too weak to dent the high unemployment rate which remained unchanged at 9.6% for the third month in a row.

The U.S. has recovered once from recession, but economists have expressed fears it could again begin contracting — known as a “double-dip” recession.

Geithner said productivity growth had been excellent, auguring well for future expansion, but that parts of the U.S. economy “still look very tough” with unemployment and the housing market still bad.

The treasury secretary did not comment directly on the Federal Reserve’s decision last week to pump an extra $600 billion into the economy to bolster the nascent recovery, saying it was an independent financial institution.

Source:  Industry Week & AFP

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