Though fears have surfaced recently among some economists that the U.S. economy is headed toward a double-dip recession, the founding partner with Los Angeles-based Beacon Economics told 270 local business executives this week that won’t happen.
“Am I still optimistic?” asked Christopher Thornberg. “Yes, maybe battered, bruised and semi-encouraged, but still optimistic.’’
The United States’ public sector is still weak, the nation lags behind from a long-term perspective, and there are some real, “if low-probability,’’ risks that the economy will worsen, he said.
But labor markets and income continue to improve; consumer spending, trade and business investment are solid; interest rates are still great; and credit and housing markets are on the mend, he added.
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Thornberg also cautioned the audience gathered at the Paso Robles Event Center on Thursday to not put too much emphasis on the stock market.
“The stock market is like the 13-year-old daughter of the U.S. economy. It’s the ultimate drama queen,’’ he said.
Thornberg provided the mid-year update for the Central Coast Economic Forecast, organized by the Atascadero and Paso Robles chambers of commerce.