Forecasters see weaker U.S. growth – Philly Fed

NEW YORK, Aug 13 (BestGrowthStock) – The U.S. economy is likely to
grow more slowly than previously anticipated in the third
quarter as it is hampered by weak conditions in the labor
market, according to a survey released on Friday.

The Federal Reserve Bank of Philadelphia’s survey of 36
professional forecasters sees the economy growing at an annual
rate of 2.3 percent this quarter, down from the previous
estimate of 3.3 percent that was issued in May.

The unemployment rate is expected to average 9.6 percent
this year, in line with the previous estimate. But the rate for
2011 was raised to 9.2 percent from 8.9 percent in the prior
survey.

Forecasters also see nonfarm employment growing at a rate
of 8,000 jobs per month in the third quarter, down sharply from
120,500 forecast previously, and 114,100 jobs a month in the
fourth quarter.

Long-term inflation expectations eased but forecasters
still saw little risk of deflation. Over the next 10 years from
2010 to 2019, headline consumer price index inflation was seen
averaging 2.3 percent annually, down from 2.4 percent in the
last survey.

Forecasters see a slightly higher chance of a contraction
in real gross domestic product in the the third quarter. They
predicted a 14 percent chance of negative growth, up from 9.8
percent in the previous survey.
(Reporting by Leah Schnurr, Editing by Chizu Nomiyama)

Forecasters see weaker U.S. growth – Philly Fed