Economists: Growth Expected In 2013
Housing Market To Continue Growing
A new survey from the National Association of Business Economics (NABE) reports that U.S. economic growth is expected to accelerate slowly next year as the housing market continues to improve. A panel of 44 professional forecasters expect economic output to grow by 1.9% during the last part of 2012, rising steadily to 3% in the fourth quarter of 2013, according to the survey by the association for professional economists.
However, the group says that pace of growth will generate an average of 155,000 jobs a month during 2013, which would leave the country's unemployment rate around the same place it is today: 7.9%, as reported by the Labor Department following last week's October jobs report. "The quarterly forecast figures suggest a pattern of slow but steady increase in employment," the report stated.
One area where economists upgraded their forecast was housing. The market has shown signs of improvement so far this year – the Commerce Department last month said housing starts increased 2.3% in August to a seasonally adjusted annual rate of 750,000. The NABE survey predicts that housing starts will reach 850,000 in 2013.