Worst to Come as Credit Crisis Chokes Growth, Nucor CEO Says

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from Bloomberg:



Worst to Come as Credit Crisis Chokes Growth, Nucor CEO Says

By Stewart Bailey and Dale Crofts

June 26 (Bloomberg) -- The global credit crisis will slow construction and U.S. economic growth for at least 18 more months, Nucor Corp. Chief Executive Officer Dan DiMicco said.

``We haven't seen the worst impact on the economy yet,'' the CEO of the largest U.S. steel producer said yesterday in an interview in New York. ``The impact of the tighter credit controls is just starting to affect folks.''

The credit crisis, sparked by U.S. mortgage defaults, caused almost $400 billion in writedowns at the world's largest banks and securities firms in the past year. Standard & Poor's and Moody's Investors Service have tightened credit-rating measures, making it more difficult for companies to borrow money, DiMicco said.

While the crisis originated in the U.S., it's a worldwide phenomenon that will last through 2009 at least, DiMicco said.

``After that, who knows?'' DiMicco said. ``There are two camps: one saying we're in a recession, the other saying we're getting close to a recession. You don't hear anyone saying we're heading toward a recovery.''

The Federal Reserve said yesterday that ``tight credit conditions'' will curb economic growth in the next few quarters. American Express Co. CEO Kenneth Chenault said credit indicators have deteriorated beyond the company's expectations.

Nucor, based in Charlotte, North Carolina, rose 5 cents to $77.18 yesterday in New York Stock Exchange composite trading. The shares have gained 30 percent this year. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=awfJrYAkXD2g&refer=home