Despite longer-term indicators of economic growth, the outlook for the coming year is not good. With or without the fiscal cliff, the economy could go into recession caused by recession in Europe and slowdown in China. Many large US corporations are pulling back on investment in new equipment, software and buildings.
Whether the large US budget deficits and the Federal Reserve's aggressive monetary policies will help or hurt are subjects of much debate. Most economists and other such experts feel they are needed.
Not all signs point down. Consumer sentiment is up, as is small business sentiment. Small business capital spending is up.
The consensus of opinion is that the fiscal cliff could be a tipping point.
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