Bangkok: Forecasters dialed back their expectations for U.S. economic growth as the unemployment rate was seen remaining high for the rest of the year, a survey released on Friday showed.
The Philadelphia Federal Reserve's third-quarter survey of 48 forecasters showed economists expect gross domestic product to grow at an annual rate of 1.6 per cent this quarter, down from May's estimate of 2.5 per cent.
Expectations for the year were also trimmed, with the economy seen growing at a 2.2 per cent pace in 2012, down from the previous 2.3 per cent.
Analysts also raised the odds that the economy could contract in any of the next four quarters. For the third-quarter, the odds were lifted to 13.8 per cent from May's 12.2 per cent.
The labor market was seen faring worse. The jobless rate is expected to average 8.2 per cent this year, before dropping to 7.9 per cent in 2013.
Nonfarm payrolls were seen growing at a rate of 125,000 jobs a month in the third quarter, down from the 170,000 economists predicted in the previous survey.
Inflation expectations also cooled. Consumer prices in the third quarter were seen averaging 1.5 per cent, down from earlier estimates of 2.3 per cent. But core inflation, which strips out volatile items such as food and gasoline, was expected to average 2.2 per cent, up from the previous 2.0 per cent estimate.
Copyright @Thomson Reuters 2012
The Philadelphia Federal Reserve's third-quarter survey of 48 forecasters showed economists expect gross domestic product to grow at an annual rate of 1.6 per cent this quarter, down from May's estimate of 2.5 per cent.
Expectations for the year were also trimmed, with the economy seen growing at a 2.2 per cent pace in 2012, down from the previous 2.3 per cent.
Analysts also raised the odds that the economy could contract in any of the next four quarters. For the third-quarter, the odds were lifted to 13.8 per cent from May's 12.2 per cent.
The labor market was seen faring worse. The jobless rate is expected to average 8.2 per cent this year, before dropping to 7.9 per cent in 2013.
Nonfarm payrolls were seen growing at a rate of 125,000 jobs a month in the third quarter, down from the 170,000 economists predicted in the previous survey.
Inflation expectations also cooled. Consumer prices in the third quarter were seen averaging 1.5 per cent, down from earlier estimates of 2.3 per cent. But core inflation, which strips out volatile items such as food and gasoline, was expected to average 2.2 per cent, up from the previous 2.0 per cent estimate.
Copyright @Thomson Reuters 2012
