Monday, May 16, 2011

NABE revises GDP estimates downward

Economy will grow more slowly than expected.
NEW YORK Economists are dialing back their expectations for U.S. economic growth this year.

A survey from the National Association for Business Economics predicts GDP will grow 2.8 percent this year - down from the group's February prediction that it would grow 3.3 percent. Their outlook for consumer spending and the housing market also weakened, in part because they expect oil prices to remain above $100 a barrel through 2012.

In a survey that the NABE releases Monday, a panel of 41 economists also said they "remain highly concerned" about the growing federal deficit, and said that growth in the first three months of the year had been weaker than expected.

The predictions of the economists reflect the jitteriness of a public that is still recovering from the financial crisis and now getting squeezed by rising prices for gas, groceries and other household items. Retailers of all stripes are paying more for the raw materials they need to make and transport their products, such as fuel, cotton and wood pulp, and saying they have no choice but to pass along the price increases to customers.

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Tuesday, May 3, 2011

State tax collections surge

DOR: "Total tax collections of $16.860 billion are up $1.927 billion or 12.9 percent, $732 million over benchmark" for April.

It's all about the entitlements

Jeffrey Miron explains the very big elephant in the room.