Is the Housing Slowdown a Sign of a Double-Dip?
Home construction and property sales led the U.S. out of seven recessions since 1960, but this time around, housing isn’t helping. In fact, some outspoken analysts like Celia Chen, who tracks the industry for Moody’s Analytics Inc., fear housing may drive us back into recession.
“There is an epidemic of thrift,” explains Nariman Behravesh, chief economist at business analysts IHS Inc. “Households and businesses are super-cautious right now.”
Unlike analysts for Moody’s, HIS’ Behravesh is more sanguine. He says, “Sometime in the next six to 12 months, we’ll start to see more movement on home and car purchases and greater willingness on the part of businesses to hire.”
Source: Bloomberg, John Gittelsohn and Bob Willis (08/23/2010
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