Top Economists Say Recovery is 'Firmly on Track'
David Sessions
Washington Reporter
Posted:
02/22/10
Top forecasters are encouraged by the U.S. economy, according to a new survey of 48 economists by the National Association for Business Economics, CNN Money reports. The group predicted that the economy will grow 3.1 percent in 2010 and 2011 -- just slightly lower than their prediction in November. Corporate earnings will grow 15 percent, spurring hiring and eventually driving household spending.
"Businesses are in position to take up some of the slack because of rebounding profits," said the association's president, Lynn Reaser. "Our economists believe improvement in sales and profits will cause them to put out the hiring signs relatively soon."
The association's survey predicted average monthly job growth of 50,000 in the first quarter this year, but expected that number to double in the remaining quarters of 2010. Unemployment, which currently stands at 9.7 percent, is expected to be down to 9.6 percent by the end of the year.
"Businesses are in position to take up some of the slack because of rebounding profits," said the association's president, Lynn Reaser. "Our economists believe improvement in sales and profits will cause them to put out the hiring signs relatively soon."
The association's survey predicted average monthly job growth of 50,000 in the first quarter this year, but expected that number to double in the remaining quarters of 2010. Unemployment, which currently stands at 9.7 percent, is expected to be down to 9.6 percent by the end of the year.