Growth forecasts for U.S. cut through 2013 on limited job gains
Global financial strains, government fiscal austerity and a lack of jobs will hurt U.S. growth over the next couple of years, according to economists surveyed this month by Bloomberg News.
The world`s largest economy will expand at an average 2.3 percent annual rate in the second half of the year, about a percentage point less than projected last month, according to the median forecast of 53 economists polled from Aug. 2 to Aug. 10. Gross domestic product will grow 2.4 percent next year and 2.8 percent in 2013, also less than previously estimated.
Companies like General Motors Co. are concerned consumers will limit spending as economists foresee the jobless rate averaging at least 8 percent through 2013. Mounting pessimism is one reason Federal Reserve policy makers said this week they are prepared to take additional action to spur the economy.
`We`re on a path that looks like persistent growth, but growth that is inadequate to solving our short-run problems,` said Neal Soss, chief economist at Credit Suisse in New York. `Markets are signaling to businesses and households the future is less certain. When your future appears to be out of control, it`s easier to pull back than it is to get aggressive.`
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