The LookoutBusiness economists see meager growth over next year
Despite a few more positive signs in recent weeks, economists still are gloomy about where things are headed in the coming year.
Eighty-four percent of business economists expect the economy to grow at 2 percent or less over the next 12 months, according to a survey conducted by the National Association for Business Economists. Just three months ago, only 23 percent of respondents predicted such a meager level of growth.
In addition, the number of companies saying they plan to hire more workers fell to 30 percent, down from 42 percent in July. And the number that have cut back on employees rose to 13 percent, up from 8 percent in July.
Since the middle of the summer, the European debt crisis, the fiasco in Washington over raising the debt limit, and the gyrating stock market all have badly damaged confidence.
If the economists' predictions are borne out and the economy grows at just 2 percent or less over the next year, unemployment would be unlikely to budge much from its current 9/1 percent rate.
