Outlook 2008: Avoiding ‘R’ word

As the end of 2007 approaches, the U.S. dollar index is near its all-time low, U.S. stock indices are well off this year’s highs, and the ongoing sub-prime mortgage implosion continues to undermine financial market confidence.

Heading into 2008, there are growing whispers about the possibility of recession in the U.S. A retrenchment in consumer spending in the wake of the continuing housing recession poses one of the biggest risks to the economy. Throw in crude oil near $100 per barrel and the potential for slower global growth and things indeed begin to look worrisome.

Despite these dangers, however, there are some bright spots for the U.S. economy, with exports leading the way. For now, most economists seem to believe the threat of recession will remain simply that — just a threat.