SocGen On French Manufacturing, ECRI's Latest Bear Warning

The economists at Societe Generale are wondering about French manufacturing today, click on chart to enlarge, courtesy of Societe Generale.

In the meantime, the ECRI has issued a bear warning:

October 09, 2009 (Reuters) - NEW YORK, - As the U.S. economy rebounds from a long-running recession, a weekly leading index of future growth released on Friday showed the annualized growth rate hitting a record high.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index rose to 128.3 in the week to Oct. 2 from 127.1 the prior week.

The index's yearly growth rate rose to new all-time high of 26.1 percent in the
latest reading, from a revised 25.0 percent the prior week.

"With WLI (Weekly Leading Index) growth rocketing to a new record high, the economic recovery will prove to be far more resilient in coming months than most believe possible," said Lakshman Achuthan, ECRI's managing director.

"The risk of a double dip (recession) is very low,"Achuthan added.

The index was pushed up by stronger housing activity, he said.

Robert DiClemente, the US economist at Citigroup, added today:

The absence of a strong leading role from consumers does not undermine prospects that recovery will be sustained. Slow and steady improvements in financial markets are closing off risks of a renewed slide.

The supremacy of financial markets and mechanical monetarism will make the trick. Equity bears are punished this week for "gigantic error of pessimism". Just put every bear on government steroids and they will dance!