Martin Hutchinson
The 1pc drop in second-quarter GDP makes this the US's worst recession since the Second World War.
Government stimulus spending has helped a bit, but US personal savings are still depressed and the federal deficit is huge.
The need to correct those imbalances could make for a very slow recovery.
The 3.7pc decline in GDP from its peak beats the 3.2pc drop in the 1973-75 recession. But it falls short of the 5pc decline of 1937-38 – let alone the 25pc drop of the Great Depression.
There are some, admittedly small, encouraging economic signs. Government intervention has helped in two ways. The decline would have been twice as severe but for direct increases in federal and state spending. And tax rebates have added an annualised $113bn (£67bn) to personal income, increasing the savings rate and presumably boosting consumption somewhat.
Factors that inhibit chances of rapid recovery in the US - Telegraph
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