Florida should avoid a recession through the start of 2012, even as some state economies show signs of shrinking, according to a Federal Reserve index.
The Philadelphia Fed’s leading index of state economies showed Florida dropping slightly in August, but still in positive territory. That means the index predicts Florida’s economy will continue growing for at least six months.
A recent report runs counter to predictions that the country is heading for a second recession. Despite better than expected economic growth in the spring, economists still see Europe’s debt crisis, strained government finances and weak confidence from consumers and businesses as threatening the recovery.
Despite a slowdown during the summer, the Fed’s analysis of Florida’s leading economic indicators suggests the Sunshine State will avoid a recession, at least through the start of 2012.