U.S. in ‘slight’ recession

Press, 20 October 1981, Page 9

U.S. in ‘slight’ recession

NZPA Washington President Ronald Reagan said yesterday that the United States was in a recession. It was the first time anyone in his Administration was willing to make such, an assessment.

“I think there’s a slight recession, and I hope a short recession." Mr Reagan said on the. White, House lawn before departing by helicopter to .~meeb*-the -French President (Mr Francois Mitterrand) at . Williamsburg, Virginia. "I think everyone agrees on that.”

The President’s comment caught his Council of Economic Advisers and other aides by Surprise. As late as Sunday, the White House spokesman, David Gergen, had refused 'to use- the word recession to characterise the poorly performing’ economy.

The Government reported last week that industrial production fell 0.8 per cent in September, . the second monthly decline in a row, and was now at the lowest level in more than a year.

Unemployment climbed from 7.3 to 7.5 per cent last month. Jerry Jordon, a member of the President’s Council of Economic Advisers and the Administration’s chief economic forecaster, said last week that unemployment could reach higher than 8 per cent by early 'next year. has not been thathigh since the end of the 1974-75 "recession, which has been called the most severe economic downturn ■ this country has experienced since the great depression of the 19305.

The Commerce Department this week will release third-quarter figures for the gross national product that are also expected to show a slight decline after being adjusted for the inflation.