The latest uncertainty about the strength of the U.S. economic recovery has not dampened economists’ expectations for growth in the second half of the year, according to Bloomberg. On Friday, Bloomberg News reported that a survey of 67 economists has shown that the economy is expected to grow at a 3.2% annual rate in the second half of the year, rebounding from an expected 2.3% growth rate in the second quarter of the year. The projection for second-quarter growth is down from the May forecast for a 3.3% expansion, although the forecast for the second half is only slightly lower than the outlook last month.
The moderation of the outlook for the coming months comes amid disappointing data, with the labor market facing particularly strong headwinds. Federal Reserve Chairman Ben Bernanke said on Jun. 7, “The economic recovery appears to be continuing at a moderate pace,” and the economists polled predicted the first fiscal tightening would come in the second quarter of 2012. According to The Wall Street Journal, households in the U.S. saw a 1.2% increase in their net worth to $58.1 trillion during the first quarter of the year. Goldman Sachs economist Andrew Tilton said the gain “would tend to increase consumer spending.”
Click here to read the story on growth expectations from Bloomberg News.
Click here for the story on net worth from The Wall Street Journal.