Stronger economic growth lies ahead, as 43 professional forecasters surveyed by the Federal Reserve Bank of Philadelphia revised most of their projections for gross domestic product growth upward.
The survey says real GDP will grow at an annual rate of 3.6%, up from the previous estimate of 2.4%, with real GDP growing 3.2% in 2011, up from their prediction of 2.5%, and a 3.1% increase in 2012, higher than their prediction of 2.9% three months ago.
For 2013, the forecast for real GDP growth is 3.0%.
The survey offers lower projections for unemployment: 9.1% in 2011, 8.5% in 2012, and 7.8% in 2013.
The forecasters expect headline CPI inflation to average 2.5% this quarter, up from the last estimate of 1.6%.
The forecasters also predict higher headline PCE inflation of 2.0% this quarter, up from the last survey’s estimate of 1.5%. However, the estimates for the next two years on CPI and PCE inflation were mostly flat.