By Evelina M. Tainer, Chief Economist, Econoday
9/21/01

Economic reports for the month of August show that the economy was in slow growth mode. Inflation remains quiet. Most economists are now revising down their forecasts for the rest of 2001 and predicting that the Fed will cut rates further through the end of the year. It is certainly possible that consumer confidence is so shaken that consumer spending will dampen significantly. However, anecdotal evidence suggests that consumers are back at the malls and auto dealers. The American consumer is resilient and one should wait for more than just September data to declare a dire emergency for the economy. Certainly some industries will be hurt more than others, but given the fiscal and monetary stimulus that's in place we may be in for a pleasant surprise.