Comerica Bank: 50% Chance of Double-Dip Recession By December 2012

Comerica Bank is saying the U.S. economy may be on the edge of tipping back into recession.

global financeSpeaking at an economic forecast conference in Houston, Comerica chief economist Robert Dye ticked off a grim list of headwinds facing the U.S.: Unemployment stagnating around 9%. Housing and consumer spending in the doldrums. The threat of a meltdown in the eurozone.

“My expectation is we’re right on the cusp. We’re at about a 50% likelihood of falling back into recession over the next, say, five quarters or so, before the end of 2012.”

Dye says if the U.S. does tip back into a recession, energy prices and trade should insulate Houston from its worst effects. Patrick Jankowski, vice president of research for the Greater Houston Partnership, agrees.

“If you look at the twenty largest trading partners for the Houston region, fifteen of them are in emerging markets. As long as the emerging markets of the developing world continue to grow, Houston should do fine as well.”

Emerging markets — such as China, India, and Brazil — account for about a third of the world economy and are now the main engine of global growth. Dallas-based Comerica acquired Houston’s Sterling Bancshares in July.


Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

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