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Several recent reports suggest that the recovery is faltering. See today’s ISM index<\/a>, for example, as well as the global PMI<\/a>, continuing jobless claims, and the house-price recovery.<\/p>\n Paul Krugman cites other disappointing news<\/a> (as well as the ISM) and says that the risk of a double-dip is increasing:<\/p>\n I’ve never been fully committed to the notion that we’re going to have a “double dip” — that the economy will slide back into recession. But it has been clear for a while that it’s a serious possibility, for two reasons.<\/p>\n First, a large part of the growth we’ve had has been driven by the stimulus — but the stimulus has already had its maximum impact on the growth<\/em> of GDP, will hit its maximum impact on the level<\/em> of GDP in the middle of next year, and then will begin to fade out. Second, the rise in manufacturing production is to a large extent an inventory bounce — and this, too, will fade out in the quarters ahead.<\/p>\n Two stories this morning highlight the risks.<\/p>\n Keep reading at the NYT ><\/a><\/p>\n Photo: Leonard Lopate Show, WNYC<\/a><\/em><\/p>\n Join the conversation about this story »<\/a><\/p>\n See Also:<\/b><\/p>\n