The recession has hit a trough and we're past the worst month, said David Kelly, chief market strategist at JPMorgan Funds.
“Economists measure recession from the best months to the worst months—And we are past the worst month,” Kelly told CNBC.
“The worst month was June, and in July we’re going to see increase in industrial products and retail sales. I think the recovery will be reasonably fast in the first two quarters.”
The House approved a $2 billion extension of the "Cash-for-Clunkers" automobile sales incentive program on Friday. Kelly said the revival of the auto industry is one of the “hallmarks” of the economic recovery.
“[Vehicle sales] also feeds all the way through the production line and all the industries, all the car industries running ads on TV, all these things add to economic output,” he said. “So if you can get vehicles back to normal, if you can get housing back to normal in terms of sales and starts, the recession would clearly be over.”
No immediate information was available for Kelly or his firm.
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