USA TODAY: The consensus of the 48 economists surveyed by the National Association for Business Economics is that bad weather cut first-quarter growth to a weak annual rate of 1.9%, but that growth could exceed 3% by year’s end. NABE’s report, released Monday, covered a survey period from Feb. 19 through March 5.
Their forecast for average U.S. economic growth of 2.8% this year is better than the 2.5% rate they predicted in NABE’s December survey. Those surveyed expect consumer spending to now increase 2.6% in 2014, not 2.4%, as hourly wage growth is forecast to rise faster than inflation. GDP is expected to grow an average 3.1% in 2015…
Given the stronger growth forecast, 57% of the economists surveyed believe the Federal Reserve will end its bond purchases in the fourth quarter, as the central bank has signaled it plans to do. Another quarter think it will happen even before that, though 17% think the Fed will keep buying bonds into 2015… (more)
