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USA TODAY: Nearly eight in 10 economists say they’re less optimistic about the nation’s economic outlook this year than they were three months ago and most call high energy prices the biggest threat to the recovery, according to a USA TODAY survey.
They expect the economy to expand 2.9% this year, about the same as 2010, down from their median forecast of 3.2% in January, according to the survey of 45 top economists conducted April 15-20. That moderate growth is far less than the 5% to 7% surges that followed previous steep downturns…
Higher gas prices are offsetting Congress’ sharp cut in Americans’ 2011 payroll taxes that helped prompt many economists to brighten their outlook early this year. The tax relief “will be going into our gas tank,”says Mark Zandi, chief economist of Moody’s Analytics… (more)
EDITOR: That is barely enough to absorb new job applicants, so unemplooyment rates are unlikely to fall much if at all.
