Milken Institute Economist Sees Some Economic Improvement

August 7, 2010 at 6:01 am Leave a comment

Rob DeVol, the economist at the Milken Institute in Los Angeles sees some improvement in the economy. What does his forecast say?

Key points in the forecast:
  • Real GDP will grow at 3.5 percent in 2010, 3.7 percent in 2011 and 3.8 percent in 2012. Growth returns to slightly less than 3 percent from 2013 to 2015.
  • The U.S. will add 1.8 million jobs in 2010, 3.1 million in 2011 and 2.6 million in 2012.
  • Real consumer spending is projected to increase 2.8 percent in 2010, 3.5 percent in 2011 and 3.0 percent in 2012.
  • New home construction won’t aid economic growth in 2010, but residential fixed investment should jump 26.0 percent in 2011 and 25.7 percent in 2012.
The recovery is fueled by:
  • Economic growth in developing countries, which supports U.S. exports
  • Improved business confidence that fosters strong investment in equipment and software
  • Consumers making previously deferred purchases of durable goods
  • Record-low long-term interest rates
  • A benign inflationary environment that will allow the Fed to keep short-term interest rates at zero until late 2010 or even into 2011
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Entry filed under: Economic Outlook, Economy. Tags: , , , .

Not Many Jobs in July Manufacturing Showing Some Strength

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