Forecasters see moderate growth ahead for the U.S. economy, with real gross domestic product growing at an annual rate of 2.3% in the second half, 2.5% early next year, and 2.9% in the last six months of 2011, according to the Federal Reserve Bank of Philadelphia’s December Livingston survey.
The estimates released Thursday were lower than those issued six months ago, when forecaster expected 3.3% growth in this half year and 3% next year. Forecasts for unemployment rates were also revised upward, with projections of 9.6% in December and 9.4% in June 2011.
Forecasters cut their projection for inflation, estimating that consumer prices will increase at an annual rate of 1.6% this year and next.