US recession: Factory,jobs data caps fear

Factory activity in the US Midwest slowed just a bit in August and private employers continued to fill new jobs despite extreme financial market turmoil,easing fears the economy would fall back into recession.

Other data on Wednesday showed a strong rebound in demand for manufactured goods in July as orders for motor vehicles posted their largest gain since 2003,another suggestion a recession could be avoided despite some weak economic signals.

For those of us who dont believe the economy is in a free fall,we have got some support, said David Resler,chief economist at Nomura Securities International in New York.

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The Institute for Supply Management-Chicago said its business barometer fell to 56.5,the lowest since November 2009,from 58.8 in July.

However,the reading was above economists expectations and indicated activity continued to grow.