NEW YORK – Real gross domestic product should grow 2.5% next year, as inflation rises 2.2% and the unemployment rate dips to 9.8%, according to predictions from the twenty-third annual Federal reserve Bank of Chicago Economic Outlook Symposium.
Consumer spending should be moderately higher next year, with business spending also up.
The housing sector is seen improving substantially after four years of decline, with residential investment is expected to rise 11.4% in 2010.
“Car and light truck sales are expected to increase to 11.4 million units in 2010—above this year’s anticipated sales of 10.2 million units,” the survey reported. “Oil prices are expected to rise to $77.50 per barrel in the final quarter of this year and then edge higher to around $83 per barrel by the end of 2010.”
Industrial production is forecasted to decline 5.5% in 2009 and rise 4.0% next year.
Short-term interest rates (one-year Treasury rate) are seen rising 75 basis points from 2009 to 2010, while long-term rates (ten-year Treasury rate) are predicted to increase 59 basis points over the same time period.
