Recession unlikely, Purdue economists say

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The sagging housing market is a concern, but won’t become a large enough problem to drag the economy into recession, Purdue University economists said yesterday during an annual outlook luncheon sponsored by the Lafayette-West Lafayette Chamber of Commerce.

They said the nation continues to churn out more goods and services, hiring remains strong and wages continue to climb-all signs that the economy remains reasonably strong, according to the Journal & Courier of Lafayette.

In Indiana, the exploding number of ethanol plants has pushed up the price of corn, thus farm earnings, which in turn should give farmers more disposable income.

The Purdue forum is among the first of several such economic outlooks scheduled in the state before the end of the year. Indiana University’s popular road show forecast is scheduled to arrive in Indianapolis on Nov. 1.

Early this week, an Indiana University economist said the housing market would slow the economy into 2008, but stopped short of predicting a recession.

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