New survey: Economy to grow at slower pace

The U.S. economy should continue to grow this year, though forecasters have lowered their expectations about the pace of recovery, according to a new survey reported by the Associated Press.

The National Association for Business Economics survey, set to be released Monday, found that economists have become more cautious in the third quarter, AP wrote. Fifty-four percent expect growth of more than 2 percent in 2010 — down from 67 percent in a similar survey last quarter.

Still, the economists saw improvement in a number of areas, AP said.

“The U.S. recovery from the Great Recession continues, with business conditions improving,” said William Strauss, an economist and adviser at the Federal Reserve Bank of Chicago who helped conduct analysis for the report.

Demand and profit margins continued to grow in the quarter, AP wrote. The survey showed better margins for the services, goods-producing, finance, insurance and real estate businesses. Margins stagnated in the transportation, utilities, information and communications industries.

The employment outlook also seemed to be improving, AP reported. The portion of firms expecting a drop in employment through attrition or layoffs fell in the quarter. But most weren’t expecting to add lots of workers either. The majority of those surveyed said employment would hold at current levels.

Strauss called the responses on employment “the best reading this year,” AP wrote.

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4 comments Add your comment

TnGelding

October 25th, 2010
8:37 am

At least it’s growing, something it wouldn’t be doing without government stimulus. But big business has to step up to the plate and probably will once the election removes the fog. But I’m afraid the reckless actions by Congress over the last 3 decades have produced a situation that will linger for some time. Hopefully I’m wrong, but we’ve failed to take that bridge to the 21st century in education, energy, transportation, immigration, tax reform and infrastructure and it is costing us dearly. At least Obama has taken down the drawbridge Bush constructed. And hopefully the fence along the border will come down as well. The great wall of America just doesn’t sound right.

UWG

October 25th, 2010
9:32 am

Martin A. Regalia, chief economist at the United States Chamber of Commerce, will provide his forecast for the U.S. economy at the annual University of West Georgia Economic Forecast Breakfast on Tuesday at 7:30 a.m. in Carrollton. Regalia oversees the chamber’s Council on Small Business and the Corporate Leadership Advisory Council.
The chamber has been in the news lately for its heightened political activity in this election season.

A.S.Mathew

October 25th, 2010
2:11 pm

The economy can’t go down any further, so the only alternative is to gradually grow up after the long stagnation. But the
speed of growth can’t be predicted, and it is going to be terribly slow. Lack of jobs, tight credit
and spending habits, also the mentality of saving make the growth pattern highly critical. There is
no hope in the nearest future for the housing to start due to the over supply of vacant homes by
the millions all across the U.S.

TnGelding

October 25th, 2010
10:52 pm

Why can’t we match the homeless with the vacant homes, especially homeless vets? It wouldn’t hurt the “too big to fail” to be a little charitable.

With tax revenue in the tank, maybe this would be a good time to switch to a consumption tax?

I’d like to see a plateau reached in population and economic growth.