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Following
the dismal set’s lowered expectations for the U.S. economy from a USA
Today poll noted here on Monday comes another survey of
economists by the Associated Press with similar results as detailed in this report earlier today.
The
U.S. economic recovery will remain slow deep into next year, held back by
shoppers reluctant to spend and employers hesitant to hire, according to an
Associated Press survey of leading economists.
The
latest quarterly AP Economy Survey shows economists have turned gloomier in the
past three months.
…
The AP survey compiles forecasts of leading private, corporate and academic
economists on a range of indicators, including employment, consumer spending
and inflation. Among their forecasts:
–
Economic growth the
rest of this year and early next year will weaken, to less than 3%.
From January through May, the economy grew at roughly a 3.5% pace.
–
The unemployment
rate will be no lower at the end of the year than it is now — 9.5%. A
majority think it will be 2015 or later before the rate falls to a
historically normal 5%.
– State budget shortfalls pose a
“significant” or “severe” risk to the
national economy. The loss of tax revenue has forced state and local
governments to cut services and lay off workers.
It
looks as though the U.S. stock market may have just seen this report…
Tim
Iacono
Iacono Research.com
Tim
Iacono is the founder of Iacono Research which provides market commentary and
investment advisory services specializing in macroeconomic analysis and
commodity based investing. He also writes the popular blog The Mess
That Greenspan Made.
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