Soft Patch


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Related to Soft Patch: Economic exposure

Soft Patch

A period of weak economic performance amid a longer strong performance. That is, a soft patch is mild slowdown between two periods of high economic growth. Central banks usually cut target interest rates during a soft patch to encourage a return to growth. The term is somewhat informal and usually used in the media and by the Federal Reserve.
References in periodicals archive ?
"It is reflective of the continuation of the soft patch that the economy has been going through, but looking forward it seems that we're starting to gain a little bit of traction," Russell Price, a senior economist at Ameriprise Financial told (http://www.nbcnews.com/business/progress-jobs-front-will-be-slow-steady-6C10215235) NBCNews.
"I think they'll have to recognize that we're in a soft patch, but they'll probably say it's not a recession."
"Trading at 10 to 11 times forward earnings, European equity have already discounted a form of soft patch. In a certain sense, it is hard to find compelling alternatives to equity investments right now," he added.
- We however believe the soft patch will prove short-lived.
After closing at its highest level in nearly three years on April 29, the S&P 500 has tumbled nearly seven per cent on the back of a barrage of soft economic data, sparking the debate over whether the economy is headed for a double-dip, or has merely hit a soft patch in its recovery.
"The global economy is embarking on a 'soft patch' and this is especially the case for advanced countries, but nobody knows what the magnitude and duration will be," said Herve Goulletquer, an analyst at Credit Agricole.
economy is now experiencing an economic "soft patch." What makes this worse is that it follows an anemic economic recovery in which over half of Americans do not yet see an end to the recession.
"It is likely that this will be a soft patch in the coming months but overall it will probably be a soft patch rather than a double-dip recession or something worse," said Sean Incremona an economist at 4CAST in New York.
"The economy entered a soft patch at the back end of 2010, and there have been few signs of a bounce-back.
The two preferred methods are the soft patch and emergency water-activated repair patch (EWARP).
Although the UK economy hit a 'soft patch' this year, the IMF expected it to grow by 2.25per cent in 2006 and expand by around 2.75 per cent in 2007.