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US Economy ‘Set’ For 2nd Half Rebound

From those infallible prognosticators at Reuters:

Traders work on the floor of the New York Stock Exchange, March 6, 2009.

Sickly U.S. economy set for 2nd half rebound: survey

Tue Mar 10

WASHINGTON (Reuters) – The recession-hit U.S. economy is proving weaker than economists expected just a month ago, but forecasters still think a recovery is in the cards for later this year, a survey released on Tuesday showed.

"Consumer spending and residential investment are expected to turn positive and begin boosting GDP growth in the third quarter of this year," the newsletter Blue Chip Economic Indicators said, summarizing its survey of private economists.

The consensus of the 51 forecasters surveyed looks for U.S. gross domestic product to tumble at a sharp 5.3 percent annual rate in the first quarter and to decline at a 2 percent pace in the second quarter.

In the third quarter, however, economists expect the economy to expand at a 0.5 percent rate, followed by a 1.8 percent fourth-quarter gain.

For the year as a whole, the economy is expected to shrink 2.6 percent, which would be the largest annual contraction since the Great Depression. A month ago the survey pointed to a drop of 1.9 percent…

By the second half consumers are expected to open their wallets, encouraged by the sharp drop in energy costs, tax cuts contained in a recently passed fiscal stimulus package and some loosening of credit conditions, the survey said

The pace of the recovery should quicken next year, the survey found. In the first quarter of 2010, the economy is expected to grow at a 2.3 percent pace, which is expected to quicken to a 3.1 percent pace by year end

Is this is the same Reuters who proclaimed that the US was in a recession more than a year and a half before it came to pass?

Funny how our watchdog media change their tune with a Democrat in the White House.

By the second half consumers are expected to open their wallets, encouraged by the sharp drop in energy costs, tax cuts contained in a recently passed fiscal stimulus package…

Yes, those tax cuts will make all the difference.

This article was posted by Steve on Tuesday, March 10th, 2009. Comments are currently closed.

4 Responses to “US Economy ‘Set’ For 2nd Half Rebound”

  1. proreason says:

    They have it all figured out for the next 18 months!!

    Well then, enough said. Time to jump back in the market. A sailboat sounds exciting! Probably a great time to book that European cruise for 2010 as well!!.

    The first 47 days were a bit rocky while the genius wrestled with the nuclear waste left by bushhitler, but we’re cruisin now in the land of milk and Obamy.

  2. Right of the People says:

    I’m looking forward to my tax cut, I haven’t been able to afford to go to Micky D’s for my double cheeseburger and fries but now with all that extra scratch I’ll be able to go at least twice a month.

    What’s next for the One, how about curing cancer if he’s got a few spare minutes?

  3. brad says:

    Not even Reuters can bring themselves to say that it will rebound, thanks to the stabilization of:
    Nurses
    Teachers
    Government workers
    Firefighters
    Police officers
    (none of which generate any revenue)

    Or the creation of:
    A bridge
    Museum
    Summer programs for youth
    More unemployment compensation etc.

    If the economy does recover, which it will, they have already set the stage to claim ownership of the victory–also failing to mention HOW the earmarks actually did any good at all. . . .

    (Funny, how the Dow was almost at 15,000, Bush got no credit at all)

  4. Colonel1961 says:

    I happen to agree with Reuters. I hate their methods, alliances and attributions, but (based upon my interpretation of economic history) we should be pulling out of this tempest-in-a-teapot by the end of the year…


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