Enter multiple symbols separated by commas

UBS Says US Economy Already in Recession

The U.S. economy is in recession, albeit a mild one, as a weakening consumer sector has compounded the ongoing problems in the housing and credit markets, according to UBS economists.

"It's not coming, it's here," UBS said in a research report Wednesday.

UBS economists forecast U.S. gross domestic product to fall 0.60 percentage point from the end of 2007 to the middle of 2008.

Last month, the government said the economy grew at an annual rate of 0.4 percent in the fourth quarter of 2007 and expanded 2.2 percent for the entire year, the weakest pace in five years.

The projected mild contraction will be led by the first decline in personal spending since the recession of 1991, UBS said.

Contact Economy


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.