WASHINGTON — U.S. consumers and businesses are not so worried that the economy is about to tumble into a recession after all.
Manufacturing grew a little more slowly in August than the previous month, but it didn’t contract as some had feared. Shoppers spent more at retail stores during the crucial back-to-school season. And fewer people applied for unemployment benefits last week, a sign that layoffs have slowed.
Thursday’s reports hardly suggest the economy is strong. They mostly point to weak growth.
But the figures were better than most economists had expected. And after a month in which stocks had plunged and many feared another downturn was looming, even marginally positive news was a welcome sign.
“There is no recession,” said Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi UFJ, in a note to clients. Despite the sharp drop in financial markets in early August, “nothing has happened to the real economy,” he said.
