Economy Expected To Pick Up Steam In 2013

According to a new survey done by USA Today, many economists are predicting that 2013 will be the year that we see a self-sustaining economic recovery. According to the median estimates of the 46 economists surveyed, they expect to see the economy pick up steam over the next nine months, and are predicting average monthly job gains of 171,000. Unemployment is expected to fall from 7.9% to 7.5% by year’s end. This is a brighter forecast than original given at the end of 2012. Economists were encouraged by upwardly revised jobs numbers, reflecting a more rapidly expanding job market than previously believed. While the first half of 2013 is expected to be sluggish as government spending cuts dampen growth and a payroll tax increase crimps consumer spending, there is an expectation of more rapid growth in the latter half of the year as the economists expect the effects of the federal cuts to fade by the fourth quarter, with growth picking up to a 2.7% pace. Analysts say the housing market is rebounding, a rising stock market is boosting consumer wealth, the European financial crisis is easing and Corporate America is cash-rich, all leading to a brighter economic outlook for 2013 than expected. Visit USA Today for the full story.