Economists trim 2011 U.S. growth forecast

WASHINGTON, March 10 (BestGrowthStock) – U.S. economists raised
their forecast for economic growth in 2010 in March, the third
straight monthly rise, while trimming their growth forecast for
2011, according to a survey released on Wednesday.

Economists surveyed earlier this month in the Blue Chip
Economic Indicators newsletter said the economy is expected to
grow by 3.0 percent in 2011, which is 0.1 percentage point
lower than estimates made a month ago.

But economists raised their 2010 growth forecast for the
third consecutive month to 3.1 percent, up 0.1 percentage point
from February.

Still, the economists predicted the recovery would be mild
given the depth of the recession.

The consensus also expects inventories to continue adding
to GDP over the next several quarters but see the size of those
contributions become increasingly smaller.

“By Q1 2011, the contribution to GDP from business
inventories is expected to become trivial,” the survey said.

The panelists said they also expect “a slower and less
powerful than is typical improvement in labor market conditions
that will cap gains in disposable personal income and personal
consumption expenditures.”

The panelists expressed concern that severe winter weather
crimped economic activity in February and that upcoming monthly
data on production, retail sales, housing starts and home sales
could fall short of earlier consensus expectations.

However, they also pointed out any weather-induced softness
should be recovered in the March data.
Penny Stocks

(Reporting by Nancy Waitz, Editing by Chizu Nomiyama)

Economists trim 2011 U.S. growth forecast