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S&P: Chances of Recession Have Doubled

Friday, September 02, 2005 1:58:49 PM

NEW YORK (AP) - The likelihood of a recession has doubled in the aftermath of Hurricane Katrina, credit rating agency Standard & Poor's said Friday.

The likelihood of a recession has increased from less than 12 percent to 25 percent following Katrina, the agency said.

"What would drive it is $100 (a barrel) oil prices," said Beth Ann Bovino, a senior economist at S&P. "While the possibility has risen, we're pretty confident of the health of the U.S. economy."


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