Forecasters downshift 2006 economic growth outlook.

Position::Briefing Book - Brief article
 
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Expect to see quicker economic growth during the first quarter of 2006 before the nation's gross domestic product (GDP) downshifts to a more moderate pace through the rest of the year, according to a survey of 51 forecasters polled by the Federal Reserve Bank of Philadelphia.

The Philadelphia Fed's fourth-quarter forecast survey predicted real GDP to enter 2006 growing at an annual rate of 3.7 percent, an upward revision over the survey's previous estimate of 3.3 percent, before falling to 3.3 percent in the second quarter and to a 3.2 percent growth rate for the third and fourth quarters.

On an annual-average-over-annual-average basis, real GDP is expected to grow 3.4 percent in 2006, unchanged from the survey's previous estimate three months earlier.

"With very little change in the outlook for growth over the next two years, the forecasters see little reason to revise their outlook for unemployment," noted the survey...

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