Economist surveyed by Blue Chip Economic Indicators have cut their U.S. 2011 GDP forecasts to 3%, down from 3.1% previously.
Yet government stimulus is causing them to hike forecasts for this year. Economists from the survey now expect 3.1% GDP growth for 2010.
The consensus also expects inventories to continue adding to GDP over the next several quarters but see the size of those contributions become increasingly smaller.
“By Q1 2011, the contribution to GDP from business inventories is expected to become trivial,” the survey said.
Thing is, 3% GDP growth isn’t all that bad considering what the U.S. has gone through. If these forecasts prove correct, we’ll take the 3% growth and be happy. We bet markets would be as well. Especially if 2012 can deliver another 3%, since medium term U.S. growth is a key uncertainty right now. Read more here >