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Philly Fed survey sees weak growth, not contraction

In a report, that won't send anyone dancing into the streets, the Federal Reserve Bank of Philadelphia released a survey of professional forecasters that sees "weak growth" for the first half of 2008.

Those surveyed see economic growth of 0.7 percent, rather than the 2.2 percent they projected three months ago, the Fed says.

Guess what? That's not a recession, but weak growth doesn't feel too good either.

The pros are looking for real gross domestic product to grow 1.8 percent in 2008 and 2.9 percent in 2009.

However, the New York Times is looking for recession. David Leonhardt has this analysis, reading between the lines of the Fedspeak:

The recession-probability index — which the Philadelphia Fed calls the Anxious Index — has yet to miss a recession entirely or to signal one that never happened.

- Mike Armstrong

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