Double dip recession in the US very unlikely, says AIB

A DOUBLE dip recession in the US is very unlikely, especially with consumer spending proving reasonably resilient, according to AIB Corporate and Commercial Treasury.

Despite a subdued outlook, AIB says no threat of a deflationary spiral is anticipated.

AIB Corporate and Commercial Treasury has lowered its 2002 growth forecasts for both the US and Britain. This takes account of evidence that growth in the second half of this year may not recover as much as anticipated. It also takes into account the fact that activity in the first half of the year was not quite as strong as thought.