Tags: Experts | signs | life | economy

Some Experts See Actual Signs of Life in US Economy

By    |   Friday, 13 July 2012 11:44 AM

Many experts say the economy will strengthen a bit during the next few months, despite the weakness of recent data such as the June jobs report.

They point to lower oil prices and signs of strength in the automobile and housing sectors as catalysts for the sunnier times ahead, The New York Times reports.

Macroeconomic Advisers predicts GDP growth decelerated last quarter to 1.2 percent from an already sub-par 1.9 percent in the first quarter. But it expects growth to strengthen in the third quarter to 2.4 percent.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

“The pace of economic growth is picking up, but not to a rate that is very robust,” Joel Prakken, chairman of Macroeconomic Advisers, tells The Times. “It certainly is no great shakes.”

As for other economists, a group surveyed by Bloomberg gave a median growth estimate of 2.2 percent for this quarter and next.

Oil prices recently dropped to an eight-month low, which should lower energy costs for many businesses and already has lowered gasoline costs for consumers.

Meanwhile, the median price of an existing home jumped 7.9 percent in May from a year earlier, and auto sales surged 22 percent in June from a year earlier.

But not everyone is on the bandwagon for a stronger economy.

“I think we’re in recession already,” Lakshman Achuthan, co-founder of the Economic Cycle Research Institute, tells Bloomberg. It’s very rare that you know you’re going into recession when you’re going into [it].”

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

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Friday, 13 July 2012 11:44 AM
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