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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (69554)	9/26/2007 6:10:29 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

Reports in U.S. and Europe dent confidence in economy By Katrin Bennhold Published: September 26, 2007 iht.com PARIS: Fears of a global slowdown in economic growth mounted Wednesday after fresh reports added to signs that turmoil in credit markets was biting into the real economy on both sides of the Atlantic. In the United States, where a downturn in the housing market had already taken a toll on consumer spending, the Commerce Department reported that orders for durable goods - everything from commercial aircraft to home appliances - had fallen by 4.9 percent in August, indicating that business investment might not be able to pick up the slack. The mood was similarly subdued in Europe. One survey indicated that consumer confidence in Germany, the largest European economy, had fallen to a five-month low. Two others showed that French and Italian manufacturers were growing more pessimistic about their outlook, following a dramatic decline in German business confidence Tuesday. The latest data deal another blow to European hopes that the Continent might withstand the slowdown in the United States. European politicians have sought to play down the risk of contagion, putting on a brave face as economists have gradually scaled back their growth forecasts for the region. Some still insist that the collapse in the U.S. subprime mortgage market will bypass them altogether. President Nicolas Sarkozy of France, for one, has maintained his growth forecast of 2 percent to 2.5 percent for this year and next, even as banks and international institutions almost unanimously expect growth of less than 2 percent. And Europe has become less dependent on American growth. Exports to the United States account for less than 3 percent of the euro zone economy, giving rise to a theory of a decoupling of Europe's fortunes from those of the United States. But analysts say that this dissociation does not protect European companies and consumers from the recent rise in borrowing costs. ...