16 May 2009
May 16 (Bloomberg) -- The U.S. economy is no longer in "freefall," Lawrence Summers, director of the White House National Economic Council, said today in a pre-recorded video shown at a forum in Shanghai."Statistics on sentiment and economic activity suggest a more mixed picture than they did two months ago," Summers said. "The economy appeared to be in freefall, much like a ball rolling off the side of a table, in October. Today, no one will describe the economy in that way."
Industrial production contracted at the slowest pace in six months, as output at U.S. factories, mines and utilities decreased 0.5 percent in April after dropping 1.7 percent in March, Federal Reserve figures showed yesterday. The Reuters/University of Michigan preliminary index of consumer sentiment rose to 67.9 in May from 65.1 in April.
"To be sure, the lull that we're seeing now does not assure that a foundation for continued recovery has been established," Summers said. "It does not assure that when recovery comes, it will be sufficiently rapid to reduce employment on a significant scale."
