Expectations for economic growth were revised higher by respondents to the May 2010 Industry Survey released yesterday by the National Association for Business Economics.

The forecast for real gross domestic product inched up to 3.2% from 3.1% in the prior survey. Those surveyed expect GDP to rise 3.2% next year, too, and by 2.8% over the next five years.

Meanwhile, the forecasters are not as concerned about credit conditions.

Financial headwinds will temper growth, while inflationary pressures are seen to be building gradually, but not to the point of stagflation being likely.

Consumer spending is seen rebounding, which accounts for the positive revisions to the outlook.

The NABE panel projects unemployment declining to 9.4% by year end and 8.5% by the end of 2011, and revised its target for full employment to 5.5%.

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