[Guest post by DRJ]
Hampered by the housing sector and rising food and gas prices, the economy grew at just 0.6% in the first quarter 2008 but that was enough to hold off the diagnosis of a recession:
“The bruised economy limped through the first quarter, growing at just a 0.6 percent pace as housing and credit problems forced people and businesses alike to hunker down.
The country’s economic growth during January through March was the same as in the final three months of last year, the Commerce Department reported Wednesday. The statistic did not meet what economists consider the classic definition of a recession, which is a retraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if modestly.”
The economy is weak and a recession cannot be ruled out but it looks like Beldar was right.