
US Economic Outlook Upgraded for 2012
By Bluford Putnam -
Thu Dec 15 11:58:00 CST 2011 CT
Improvement for the USA in Unemployment, Inflation
The economic outlook for the United States is materially improved. We are now forecasting real GDP to grow around 3.5% to 4.0% for 2012, with the unemployment rate declining below 8% by the end of the year. Core inflation, excluding food and energy, will continue to creep higher and be running around 3.5% by December 2012.
In terms of real GDP, this is a substantial upgrade from our previous 1.5% to 2% forecast for 2012. We are not, however, revising our view that the US will average around 2% annual real GDP growth for the decade, but we have come to the conclusion that 2012 will be considerably above average.
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