8:17 am October 25, 2010, by Henry Unger
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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