>This "recovery" has none of the characteristics of a recovery (NATIXIS)

What are the normal characteristics (not necessarily all present at the same time in all recoveries) of an economic recovery?

■ upturn in corporate investment with a reappearing need to increase production capacity;
■ upturn in real estate investment, due to the fall in interest rates, disappearance of the stock of unsold housing;
■ decline in the household savings rate due to the pick-up in household credit and the return of positive wealth effects;
■ upturn in wage incomes after the end of the adjustment in employment.

None of these characteristics is appearing at present, which, in our view, shows that the upturn in activity, driven by fiscal deficits, is not a real recovery.

To read the full report: CHARACTERISTICS OF A RECOVERY