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Thursday, August 4, 2011

Recession warnings on the rise (ext)

NEW YORK (CNNMoney) -- There are growing warnings that the United States could fall into a new recession, even with its debt ceiling crisis finally behind it.

Economists have been ringing alarm bells after disappointing readings on some key economic indicators, including those measuring consumer spending, manufacturing, job cuts and gross domestic product.

And this Friday's closely-watched jobs report isn't likely to be much better. Economists surveyed by CNNMoney forecast a gain of only 75,000, with unemployment expected to remain at 9.2%.

Investors are increasingly worried about the state of the economy, sending stocks into a slide. The Dow Jones industrial average opened lower again Wednesday, the day after the blue chip index tumbled 266 points, while the S&P 500 slipped into negative territory for the year.

Martin Feldstein and Larry Summers, two leading economists from opposite political camps, both made comments Wednesday suggesting a significant threat of a new recession.

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