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Morgan Stanley strategist Gerard Minack wrote in a Friday note that he now expects a "recession of 1990s-type severity," as this year's "insulating factors," such as resilience in commodities, begin to fade.
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While the American economy might grow no faster than a few percent a year after inflation, he does not expect a recession.
I don't expect a recession here in the UK.
Among businessmen polled recently for Handelsblatt, a financial daily, almost half expected a recession.
But economists, many of whom expect a recession, said the report was far from comforting.
"It is certainly a slowing economy," she said, "although I am not one of those economists expecting a recession.
"The job market has been a stalwart of strength," said Mr. Stern of Bessemer Trust, who does not expect a recession.
The Japanese economy also contracted in the second quarter, and most economists now expect a recession in Britain.
In a note to clients yesterday, Ms. Cohen said stocks were now undervalued and she does not expect a recession or an uptick in inflation soon.
Investors were already expecting a recession, and although the attack may worsen the recession, it could also lead to a sharper recovery, Mr. Dorsey said.
While not expecting a recession, Violante Di Canossa, an analyst at Credit Suisse, wrote in a note that the data "remains consistent with sluggish growth".
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