Paulson that the U.S. economy a few months before the real recovery

U.S. Treasury Secretary Paulson on the 20th that the U.S. economy needs a few months to shake off the current slowdown in the growth of state. He stressed that, despite the mortgage crisis could trigger more problems, but the U.S. banking system is still working well.

Economic weakness will continue

Paulson in a U.S. television interview, said that the state of U.S. economic growth may be slowing down last several months, rising energy prices will slow down the extension of this period, while economic recovery is the key to stability in the housing market.

He also noted that despite IndyMac Bank to take over the incident, the U.S. banking system is still operating well, the banking industry the problems can be controlled. California, IndyMac Bank a few days ago due to financial difficulties was the federal government took over, the loan-to-become a crisis erupted over the past year's biggest bank closed down the incident.

Paulson also said that the U.S. Congress to approve his assistance "Fannie Mae" and "premises of the United States and" expressed optimism about the motion. The two largest U.S. mortgage finance institutions - "Fannie Mae" and "premises of the United States" recently sank into financial difficulties. The U.S. Treasury Department and the Federal Reserve said that the two institutions will help to avoid further impact the U.S. economy.

U.S. President George W. Bush last week also said that house prices fell, the surge in oil prices and other issues so that the American people are facing "difficult times", but he is convinced that the U.S. economy will be able to overcome the current challenges. Bush said the United States is in a difficult moment, but the economy is still growing, the increase in exports, productivity remained strong, so he on the U.S. economy's long-term performance full of confidence. Bush said that he understood outside the United States worry that the banking system, but that the U.S. banking system based on stability, but the Government has taken measures to help stabilize the housing market and the financial markets and enhance investors in Fannie and premises of the United States and confidence. For the current financial plight of a U.S. financial markets and trigger a turbulent one Fannie and premises of the United States, Bush said that the Government's emergency relief plan, but not excessive relief.

Or will avoid recession

National Association for Business Economics (NABE) has released an analyst quarterly survey showed that the U.S. economy may have avoided recession, but because commodity prices will erode corporate profits up, over time, the U.S. economy will be lower than the trend rate of expansion Standard.

In the June 19-July 10 to a survey conducted showed that analysts view the prospects of the economy in April, has not so pessimistic, but price pressures still weighed on economic growth.

U.S. contractors Association (AGC) Ken Simonson, chief analyst said: "and the first quarter compared to the second quarter, more companies reported operating income growth, but also rising raw material costs, profits fell." Analysis of the respondents Division, 75% of the companies called in the second quarter of the expenditure on raw materials increased and is expected prices will rise further. But there are still 44 percent of the respondents expect the second quarter, the inflation-adjusted gross domestic product (GDP) growth rate will exceed one percent, 45 percent are expected to be less than 1%, 10% thought that would Contraction.

Source: China Securities News