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Buffett casts doubt on fears of US double-dip recession


Warren Buffett

Warren Buffett

Warren Buffett

Warren Buffett ruled out a second recession in the US and said businesses owned by his Berkshire Hathaway are growing.

"I am a huge bull in this country," Mr Buffett told the Montana Economic Development Summit. "We will not have a double-dip recession at all. I see our businesses coming back almost across the board."

Berkshire bought railway operator Burlington Northern Santa Fe for $27bn (£15bn) in February in a deal that the 80-year-old investor called a bet on the US economy.

The billionaire's outlook contrasts with the views of economists such as New York University professor Nouriel Roubini and Harvard University professor Martin Feldstein, who said the odds of a double-dip may be one in three or higher.

"I've seen sentiment turn sour in the last three months or so, generally in the media," Mr Buffett said. "I don't see that in our businesses. I see we're employing more people than a month ago, two months ago."

The US economy grew at a 1.6% annual pace in the second quarter, exceeding most economists' expectations.

US economic growth will slow to 2.5% next year from a projected 2.7% this year as unemployment above 9% tempers consumer spending, according to the median forecast of economists surveyed by Bloomberg News this month.

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