Most business economists see US growth above 2 pct

NEW YORK: Most business economists predict that US economic growth will surpass two per cent over the next year, despite softening in some business conditions, according to a survey.

The improving forecasts for US growth come amid a weakening profit outlook and continued uncertainty over thorny debates in Washington on trade and tax policy, said the Nat iona l Associat ion for Business Economics, summarizing a quarterly survey of 85 economists.

“Po l i cy devel o pment s , including those affecting the North America Free Trade Agreement, remain on the panel’s list of concerns, but continue to have limited impact on business decision- making with regard to hiring or investment,” said Emily Kolinski Morris, chief economist at Ford.

“The recent hurricanes appear to have had relatively limited impact on respondents’ firms, with more than 80 per cent of panellists reporting no anticipated impact on their business in the third or fourth quarters due to Hurricanes Harvey and Irma.”

The outlook for real gross domest ic product growth “improved materially” in the October survey compared with July, the report said.

Eighty per cent of the group predicted that growth would run between 2.1 per cent and 3.0 per cent over the next 12 months, while 15 per cent saw it running between 1.1 per cent and 2.0 per cent, the report said. — AFP