Posted: Apr 26, 2010 9:06 AM by Associated Press
A new survey shows economists are more optimistic about growth this year as industries increasingly report better profits and add new jobs, though they still expect the recovery to remain slow.
Seventy percent of those surveyed by The National Association for Business Economics believe real GDP will grow by more than 2 percent this year, up from 61 percent who said the same in January. Twenty-four percent are predicting real GDP will grow by more than 3 percent in 2010, up from 14 percent earlier this year.
The NABE forecast, released Monday, shows fewer jobs are being shed, more are being created and more companies are making money. But rising wages and materials costs, weak pricing power and still-tight credit conditions may be curbing capital spending.