US has dodged recession, forecasts show

10 October 2011

The US has managed to sidestep a recession for the time being, it has been predicted.

Economists at Goldman Sachs Group - which was founded in 1869 - and Macroeconomic Advisers have increased their growth forecasts for the third quarter of 2011, Bloomberg reports.

Although the experts said it is too soon to claim the economy is safe at present, they implemented the rises from around two per cent to 2.5 per cent.

This represents the quickest growth in the last 12 months and is markedly higher than the 1.3 per cent recorded in the second quarter.

The economists' increases came after a 103,000 rise in payrolls was achieved last month, off the back of a flurry of statistics that were deemed to be stronger than anticipated.

Allen Sinai, president of Decision Economics in New York, said: "The US economy doesn't look like it's double-dipping at all. But it is a crummy recovery."

By Gary Cooper

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