US economy continues recovery but threats loom in euro zone, Asia

18 May 2012 19:13  [Source: ICIS news]

HOUSTON (ICIS)--The US economy continued its recovery this week, as housing starts, business inventories and retail sales all made gains, while inflation remained in check, the American Chemistry Council (ACC) said on Friday.

However, risks still remain, such as the eurozone crisis and weakness in Asia.

“Europe is in recession and many Asian economies are also weak and transmission of these negative impulses will reach these [US],” the ACC said in its weekly economic report.

“Concern over the euro area crisis has re-emerged and overall, the risks to the US economy are rising again.”

Additionally, the decline in oil prices has been a welcome relief to consumers, but it indicates weakening global fundamentals, the ACC said.

“Manufacturing has been a bright spot in the economy during the past few years and based on strong exports and business investment with renewed competitiveness has led the recovery,” the group said.

“The economy continues to struggle but expectations are cautiously optimistic for the recovery to plod ahead.”

By: Bobbie Clark
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