RJ and Makay

The economy is proving more resilient than many naysayers predicted, according to September’s Monthly Outlook from Wells Fargo’s economics group.

Worries that GDP growth would slow even further and possibly slip into negative territory have subsided now that much of the July and early August data show modest economic gains. While it is currently weak—at 1.6% in the second quarter—business fixed investments rose during this time period and consumer spending and savings rates are on the rise.

Wells Fargo also expects the 1.6% GDP growth rate to remain firm for the remainder of the year, but increase in 2011 as long as interest rates do not rise.

While an economic double-dip is unlikely in the U.S., Wells Fargo is prompting the government for more support. Its Monthly Outlook report noted that “increased risks of a double-dip should prompt additional monetary and fiscal stimulus, not because the economy is backsliding but rather because the consequences of a second economic slump would be so costly to counteract.”