Forecasters see stronger US recovery – Philly Fed

NEW YORK, May 14 (BestGrowthStock) – The U.S. economy is likely to
grow more strongly than previously expected in the second and
third quarters, with improved labor market conditions speeding
the pace of recovery, according to a survey released Thursday.

The Federal Reserve Bank of Philadelphia’s survey of 44
professional forecasters sees the economy growing at a 3.3
percent annual rate in both the second and third quarters, with
only a slight tapering off in the final three months of 2010.

In the prior survey, forecasters predicted a 2.7 percent
rate of growth over each of the next two quarters.

The unemployment rate is expected to average 9.6 percent
this year, down from 9.8 percent in the prior survey, and to
drop to 8.9 percent in 2011.

Forecasters also seen nonfarm employment growing at a rate
of 207,300 jobs per month this quarter and 120,500 jobs per
month in the third quarter.

Growth is expected to taper off to 2.8 percent in the final
three months of 2010, compared with an estimate of 2.7 percent
in the previous survey.

For 2010, the survey forecasts the economy will grow at a
3.3 percent annual rate, up from 3.0 percent in the previous
survey.

Long-term inflation expectations held steady, with headline
consumer price index inflation seen averaging 2.4 percent
annually between 2010 and 2019, according to the survey.

Money

(Reporting by Steven C. Johnson, Editing by Chizu
Nomiyama)

Forecasters see stronger US recovery – Philly Fed