Tags: USAToday | Poll | Economists | Less | Optimistic | Pricey | Fuel

USAToday Poll: Economists Less Optimistic Thanks to Pricey Fuel

Wednesday, 27 Apr 2011 08:33 AM

About eight in 10 economists are more pessimistic over the fate of the economy than they were three months ago, blaming high energy prices for their cloudier outlook, according to a USA Today survey.

The economy should expand 2.9 percent this year, down from a median forecast of 3.2 percent in January, according to the survey of 45 top economists conducted April 15-20.

"We’ve hit an air pocket (but) we’re still in a solid takeoff," says Chris Varvares, president of Macroeconomic Advisers.

gas200getty.jpg
Gasoline prices keep rising.
(Getty photo)
Nationwide, regular unleaded gasoline averaged $3.85, up about 75 cents since early January, the newspaper reports.

Higher gasoline prices are offsetting the effects of payroll tax cuts approved earlier in 2011.

The tax relief "will be going into our gas tank," says Mark Zandi, chief economist of Moody's Analytics.

President Barack Obama has said that high gasoline prices will hurt his popularity. "My poll numbers go up and down depending on the latest crisis, and right now gas prices are weighing heavily on people," Obama tells Democratic donors in Los Angeles, according to the AFP newswire.

A National Journal poll of political insiders shows a great majority – including 75 percent of Democratic insiders – predict that their party will be "hurt more by rising gas prices."

AAA's Auto Club of Southern California, home to some of the country's highest gas prices, is reporting a 13 percent increase in servicing drivers who run out of gas in the first three months of 2011.

"It's so painful to go to the gas station they just put it off and they can make it," says AAA spokeswoman Marie Montgomery.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
About eight in 10 economists are more pessimistic over the fate of the economy than they were three months ago, blaming high energy prices for their cloudier outlook, according to a USA Today survey. The economy should expand 2.9 percent this year, down from a median...
USAToday,Poll,Economists,Less,Optimistic,Pricey,Fuel,gas,gasoline,us,economy
275
2011-33-27
Wednesday, 27 Apr 2011 08:33 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved