Forecasts for real gross domestic product growth in the last half of 2011 were cut to 2.5% from the 3.2% expected six months ago, while projections for the first half of 2012 were slashed to 2.1% growth from the 3.0% expected six months ago, according to the Livingston Survey, released by the Federal Reserve Bank of Philadelphia Thursday.

The forecasters raised projections for unemployment to 9.0% at year-end 2011, from 8.6% in the last survey, to 8.9% at mid-year 2012, compared to their previous projection of 8.3%, and to 8.7% at year-end 2012.

The inflation outlook was nearly flat when based on the consumer price index, but two ticks lower when based on the producer price index. Those surveyed see 3.2% inflation this year, 2.2% next year, and 2.3% in 2013 based on CPI, and 6.1%, 2.3% and 2.6% based on PPI.

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