The Outlook: No Boom, No Doom

The economy’s mixed performance in recent months has led to a growing perception that a recovery has not yet begun, or that its sustainability is threatened. Recent declines in housing sales and new car sales, stalled industrial production, and minimal growth in employment have caused some observers to dismiss the reported third-quarter revival in economic growth. Pending layoffs by some manufacturers, financial institutions, and retailers are seen as additional warning flags of a faltering economy.