07 October 2012 15:18 [Source: ICIS news]
BUDAPEST (ICIS)--US economic growth is likely to be meagre in coming months, a chemical trader said on Sunday, predicting that growth may not resume until the second half of next year.
The US economy seems “to take one step forward and two steps backward,” the source said on the sidelines of the 46th annual European Petrochemical Association (EPCA) meeting.
The statement echoes a recent US congressional report which warned that the US economy could tumble into a new recession early in 2013, unless Congress acts to resolve automatic tax increases and mandated budget cuts that are scheduled to kick in with the new year.
US GDP grew by only 1.5% in the second quarter on an annualised basis, down from the first quarter’s already weak 1.9% expansion.
The Department of Commerce will issue its first estimate for US GDP growth for the third quarter on 26 October.
At least for the short term the economy will likely be moving sideways, the trader predicted, adding that the upcoming US presidential election has little to do with the sluggish GDP.
The lull in the economy could actually be the result of a new era of meagre growth, the source said.
The annual EPCA meeting runs from 6-10 October.
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