Financial Times FT.com

US downturn

Recession nears as consumers cut back

By James Politi in Washington

Published: October 30 2008 20:40 | Last updated: October 30 2008 20:40

“The recession bell just rang louder,” said Jonathan Basile, an economist at Credit Suisse, after the US government said on Thursday the economy contracted at an annualised rate of 0.3 per cent in the third quarter.

Although the headline figure was slightly better than the 0.5 per cent decline forecast by economists, the data nonetheless painted a gloomy picture of the US economy, offering scant signs of a quick rebound.

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