Economic Growth Expected to Pick Up
U.S. economic growth should accelerate in the second quarter and remain healthy for the rest of this year, but less than previously estimated, according to a forecast by a group of U.S. business economists. Job growth should remain steady and consumer spending will also likely pick up, according to a survey by the National Association of Business Economists that included 47 economists from companies, trade associations and academia was conducted from May 8 to May 21. They expect economic growth will jump to 3.5% in the second quarter and remain above 3% for the rest of the year. They also project that employers will add 209,000 jobs a month this year. That’s up from their March forecast of 188,000. So far this year, hiring has been a little bit better: it has averaged 214,000 a month from January through May. More jobs means more people earning paychecks, and that can boost spending. Economists are more optimistic about consumer spending this year, which they estimate will grow at a 2.9% pace. That would be the highest level since 2006. AP/CNBC.