Top economic forecasters, who are relied upon by CEOs, have lowered their expectations for U.S. economic growth for 2010 and 2011, and they predict continued high rates of unemployment.
According to a study released by the National Association of Business Economics, economists expect to see the U.S. gross domestic product rise by 2.6 percent this year, versus the 3.2 percent projection made in May. They expect growth to fall at a modest 2.6 percent next year as well, cutting that estimate by the same amount. Consumer spending levels are expected to be modest, given the unemployment rate, with the upcoming holiday spending season seen rising by an “especially weak” 2.5 percent.
One bright spot highlighted by NABE is “The outlook for real spending on equipment and software calls for sustained double-digit growth over the forecast horizon.”
For more analysis on the NABE projections from The Wall Street Journal, please click here.