Pay No Attention to the Man Behind the Curtain: US Risks Recession in 2012 Despite Recent Data

Despite strong manufacturing data out of the U.S., one economist says the economy has a high chance of slipping back into recession in the second half of 2012, according to CNBC

In the United States, the manufacturing sector grew at its fastest pace in seven months in January as new orders improved, but Jim Walker, Founder and Managing Director of independent research firm, Asianomics, told CNBC that the U.S. economy is going to face a slowdown this year owing to fiscal tightening.

"There's going to be a significant slowdown in fiscal expenditure in the U.S., they're going to have to control the fiscal side much more as the year goes on," he said.

On Wednesday, the U.S. House of Representatives voted overwhelmingly to freeze wages for federal civilian workers until 2013, a move that will save taxpayers $26 billion.

According to Walker, pullbacks in government spending will cut between 1 and 1.5 percent from U.S. GDP in 2012…..

Read all about it at http://www.cnbc.com/id/46232025