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Economists rein in expansion forecasts: survey

Fri Aug 10, 2012 10:16am EDT

NEW YORK (Reuters) – Forecasters dialed behind their expectations for mercantile expansion as a stagnation rate was seen remaining high for a rest of a year, a consult expelled on Friday showed.

The Philadelphia Federal Reserve’s third-quarter consult of 48 forecasters showed economists design sum domestic product to grow during an annual rate of 1.6 percent this quarter, down from May’s guess of 2.5 percent.

Expectations for a year were also trimmed, with a economy seen flourishing during a 2.2 percent gait in 2012, down from a prior 2.3 percent.

Analysts also carried a contingency that a economy could agreement in any of a subsequent 4 quarters. For a third-quarter, a contingency were carried to 13.8 percent from May’s 12.2 percent.

The labor marketplace was seen faring worse. The jobless rate is approaching to normal 8.2 percent this year, before dropping to 7.9 percent in 2013.

Nonfarm payrolls were seen flourishing during a rate of 125,000 jobs a month in a third quarter, down from a 170,000 economists likely in a prior survey.

Inflation expectations also cooled. Consumer prices in a third entertain were seen averaging 1.5 percent, down from progressing estimates of 2.3 percent. But core inflation, that strips out flighty equipment such as food and gasoline, was approaching to normal 2.2 percent, adult from a prior 2.0 percent estimate.

(Reporting by Leah Schnurr; Editing by Padraic Cassidy)

Source: Article Source

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