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The US economy is in recession, and will worsen into 2009 as high unemployment crimps consumer spending, a survey reports.

 

The National Association of Business Economists' poll of 50 professional forecasters found that real gross domestic product was expected to fall 2.6 percent in the fourth quarter, and slump 1.3 percent in the first three months of 2009.

 

The results of the survey, conducted between October 28th and November 7th, indicate growing pessimism among forecasters.

 

Just month ago, forecasters expected the economy to expand 0.1 percent in the fourth quarter, with the growth pace accelerating to 1.3 percent in the first quarter of 2009.

 

Troubles in the US housing sector, in the wake of the subprime mortage scandal, have engulfed the broader economy, resulting in rising job losses and tight access to credit.

 

About 96 percent of the forecasters polled believe that America is already in a recession.

 

The unemployment rate was likely to peak at 7.5 percent by the third quarter of 2009, according to those surveyed.

 

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