NEW YORK – Participants see GDP growing slightly more than they did six months ago, predicting 2.2% growth through the second quarter of this year and 2.6% in the second half of the year, each 0.1-percentage point better than the previous survey, according to the June Livingston Survey, released by the Federal Reserve Bank of Philadelphia Thursday.
The forecasters see GDP growing at a 2.3% rate in the first half of next year.
Those surveyed also cut their predictions for the unemployment rate through June to 8.1% from 8.9% in the prior survey, and to 8.0% by year end, off from 8.7% in the prior survey. At the end of June 2013, the forecasters expect the jobless rate to fall to 7.8%.
CPI inflation predictions through the end of the year were raised to 2.3% from 2.2%, while next year was cut to 2.0% from 2.3%, while PPI inflation was cut to 2.1% from 2.3% through the end of the year and to 2.1% from 2.6% for next year.
Interest rates on the three-month Treasury were raised slightly to still-low levels of 0.09% on June 29, 2012, 0.10% by Dec. 31, and 0.12% on June 28, 2013, while rates for 10-year Treasuries were cut to 1.80%, 2.20% and 2.50% on those dates.
