Is the economy headed in a dreaded "double-dip" recession?
The Tatum Survey of Business Conditions, as of June 1, indicates that the negative trend that began early this year is continuing, and is suggesting that overall economic activity is now approaching zero growth. Any further deterioration in conditions would likely put our economy back into recession. International transactions in particular slowed last month, reflecting the global slowdown. Capital expenditure commitments are the least weak (but hardly strong) spot. The Southwest is the strongest region for business conditions. Mid-size businesses emerged this month as seeing the best conditions.
The national debates will intensify about what the government should do about our economy. We are stuck on the horns of multiple dilemmas as we face the (often conflicting) problems of trying to deal with our governmental debt situation, the threat of inflation, and the best way to stimulate our economy through fiscal and monetary actions. There is no easy solution.
The complete commentary and report can be found in the Resource Library on Tatum’s website.
