- Posted May 01, 2019
- Tweet This | Share on Facebook
Survey predicts slower pace of economic growth
By Josh Boak
AP Economics Writer
A survey of corporate economists predicts the economy will expand over the next year, although the pace of growth will decline and employers are facing pressure to raise wages, spend more on worker training and automate tasks because of the low unemployment rate.
Just 53% of the economists polled for the National Association for Business Economics' April survey, released Monday, expect the economy to grow by more than 2% this year, down from 67% who felt that way in January. The results from the survey released Monday suggest a sharp slowdown after the Commerce Department reported last Friday that the economy grew at a strong 3.2% during the first quarter.
The economy grew quickly during the first three months of 2019 because of a surge in company inventories and a shrinkage in the trade gap, temporary factors that are likely to fade.
Businesses increased imports at the end of 2018 out of concern that President Donald Trump could further escalate tariffs against China, but the administration held off to conduct trade talks with the world's second largest economy.
However, the NABE survey found that the tariffs already imposed by Trump have been a drag. For economists involved in goods producing, 75% said the import taxes were a negative.
Still, profit margins were rising in 32% of the corporate economists' firms, up from 23% previously. More than half - 52% - say there was a shortage of skilled labor, a sign of possible wage pressures.
Published: Wed, May 01, 2019
headlines Oakland County
- Annual Dinner & Meeting
- FORCE Team arrests six in prolific auto theft ring
- Michigan allocates $12 million to support community-based organizations in advancing environmental and climate justice
- Oakland County and SMART launch pilot program providing free transit for veterans and dependents
- Supreme Court sides with the Consumer Financial Protection Bureau
headlines National
- More lawyers—and clients—want to learn about sustainable development practices
- Top artificial intelligence insurance tips for lawyers
- Lawyer charged with illegally transmitting Michigan data after 2020 election
- Viral video shows former Rikers Island inmate as she learns she passed bar exam on first try
- How Sullivan & Cromwell is scrutinizing potential new hires after campus protests
- No separate hearing required when police seize cars loaned to drivers accused of drug crimes, SCOTUS rules