The U.S. economy has entered a recession that will be more painful and drawn out than the usual downturn, the director of the Reuters/University of Michigan consumer sentiment survey said on Friday.
Inflation pressures will linger despite the retrenchment in consumer spending, complicating the task of policy-makers, the University's Richard Curtin said in a report, citing data from industry group The Conference Board.
"This is no ordinary recession," he said. "The aftereffects will last much longer than the typical downturn."
He said the Conference Board's expectations index is a strong predictor of economic contractions, and that it is currently flashing red.