Economy displays more signs of slowing

0 Comments | USA TODAY, November, 2006 | by Barbara Hagenbaugh

WASHINGTON -- There is little doubt the economy is slowing. What is unclear is how long the decline will last or how deep it will be. The latest evidence of a slowing economy came Wednesday in reports showing a dip in the rate of growth in the manufacturing sector and a further decline in housing construction.

Also on Wednesday, Merrill Lynch warned clients that its "recession-risk indicator" is now pointing to a 51% chance of a recession in the next year, the highest such odds since the last recession in 2001. The indicator has only twice hit the 51% line without being followed by a recession, Merrill Lynch chief North American economist David Rosenberg said in a report titled, "On a Knife's Edge." The question of whether there will be a recession is "still a tough call,"...