WASHINGTON — Another recession isn’t likely over the next 12 months. Neither is any meaningful improvement in the economy. That’s the picture from an Associated Press survey of leading economists who have grown more pessimistic in recent weeks. They say high unemployment and weak consumer spending will hold back the U.S. economy into 2012.
Their gloominess comes as Europe’s debt crisis threatens to infect the global financial system. It also coincides with an annual economic conference and speculation about whether Federal Reserve Chairman Ben Bernanke will unveil new steps to help the economy.
What makes a solution so difficult is that the fear gripping investors isn’t just a symptom of economic distress; it’s also a cause. Sinking stock prices frighten consumers and businesses, which then spend and invest less.
