The U.S. economy is likely to grow more slowly than previously anticipated in the third quarter as it is hampered by weak conditions in the labor market, according to a survey released Friday.
The Federal Reserve Bank of Philadelphia's survey of 36 professional forecasters sees the economy growing at an annual rate of 2.3 percent this quarter, down from the previous estimate of 3.3 percent that was issued in May.
The unemployment rate is expected to average 9.6 percent this year, in line with the previous estimate. But the rate for 2011 was raised to 9.2 percent from 8.9 percent in the prior survey.
Forecasters also see nonfarm employment growing at a rate of 8,000 jobs per month in the third quarter, down sharply from 120,500 forecast previously, and 114,100 jobs a month in the fourth quarter.
Long-term inflation expectations eased but forecasters still saw little risk of deflation. Over the next 10 years from 2010 to 2019, headline consumer price index inflation was seen averaging 2.3 percent annually, down from 2.4 percent in the last survey.
Forecasters see a slightly higher chance of a contraction in real gross domestic product in the third quarter. They predicted a 14 percent chance of negative growth, up from 9.8 percent in the previous survey.
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