Economists trim 2011 US growth forecast

Source: Reuters

10 Mar 2010, 1056 hrs IST, REUTERS

WASHINGTON: US economists raised their forecast for economic growth in 2010 in March, the third straight monthly rise, while trimming their growth forecast for 2011, according to a survey released on Wednesday.

Economists surveyed earlier this month in the Blue Chip Economic Indicators newsletter said the economy is expected to grow by 3.0 per cent in 2011, which is 0.1 percentage point lower than estimates made a month ago.

But economists raised their 2010 growth forecast for the third consecutive month to 3.1 per cent, up 0.1 percentage point from February. Still, the economists predicted the recovery would be mild given the depth of the recession.

The consensus also expects inventories to continue adding to GDP over the next several quarters but see the size of those contributions become increasingly smaller. "By Q1 2011, the contribution to GDP from business inventories is expected to become trivial," the survey said.

The panelists said they also expect "a slower and less powerful than is typical improvement in labor market conditions that will cap gains in disposable personal income and personal consumption expenditures."


Read more: http://economictimes.indiatimes.com/news/international-business/Economists-trim-2011-US-growth-forecast/articleshow/5666247.cms

the motions and accomplishes nothing. wall street and criminal corporate america will continue to bleed the country dry with higher commodity and necessity prices as WE spiral deeper and deeper into the deficit and debt abyss. The sad part is it doesn't have to be this way; no one really cares or believes that eventually the whole GD thing is going to collapse.

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