Is the outlook on the economy brightening?


Economists are a strange bunch. Their predictions range from the wildly optimistic to the bleakest pessimism. They use numbers to suit their philosophical bent, numbers that will justify their positions. Some believe that the numbers are hocus pocus. However, we must depend upon the numbers that the government provides .

Here are economists' predictions for the second half of 2009 and 2010 according to a Bloomberg survey:

  • Growth will average 1.5% in the second half and 2.1% next year.
  • Economists see no need for a second stimulus package.
  • The economy probably shrank 1.8% in the last quarter.

  • Our trade gap fell by 9.8% to $26 billion. This is partly due to a decline in world trade.
  • With General Motors coming back on line, auto and auto supply sales should rise. The '"cash for clunkers" program will also add to auto sales.
  • The US federal budget deficit will be about 12.1% of GDP this fiscal year.
  • The Federal Reserve should leave interest rates near zero through the third quarter of next year.
  • Consumer spending, which accounts for 70% of the economy, should rise by 1% this quarter and 1.8% in the first quarter of 2010.

Those who are familiar with the Rorschach Test know that in this test we see what we want to see. The same is true of the economy. There are definite signs that the economy is expanding and that the recession is ending.

Do you choose to see an end of the recession?

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 10, 2012: 05:03 PM

Hot Stocks

General Electric

18.875-0.255(-1.33)

Alcoa

10.29-0.35(-3.29)

Apple Inc

493.42+0.25(+0.05)

Google Inc 'A'

605.91-5.55(-0.91)

Bank of America

8.07-0.11(-1.34)

Wal-Mart Stores

61.90-0.06(-0.10)

Exxon Mobil Corp

83.80-1.08(-1.27)

Ford

12.44-0.25(-1.97)

Citigroup

32.925-0.735(-2.18)

IBM

192.42-0.71(-0.37)

Yahoo

16.14+0.14(+0.88)

Starbucks

48.82-0.38(-0.77)

Microsoft

30.495-0.275(-0.89)

Home Depot

45.33+0.06(+0.13)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1328911428423 ms.