Page 14 - Minister Mike De Meza

U.S. NEWS A7
Tuesday 25 August 2015

US Financial Front:

AP survey: Dimmer outlook for US economy, wages, hiring

people between 18 and 34 forecast that the average with factory output, and
years old — to step up their 30-year fixed mortgage its stock market has sunk.
home buying and boost rate will rise from 3.9 per- The country has devalued
growth in coming years. cent to 4.4 percent by its currency in part to try to
— All but two of the econ- mid-2016 and 4.8 percent boost exports, but growth
omists think the Federal by the end of 2016. Those is expected to slip to 7 per-
Reserve will raise the short- levels are still low by histori- cent this year, the slow-
term rate it controls by cal standards. est pace since 1990. Half
year’s end, with 80 percent — China’s economic the economists said they
pegging the Fed’s mid- troubles will worsen, in think China’s growth will
September meeting as the turn slowing the global weaken further in the next
mostly likely time. economy. In just the past year to below a 6 percent
— Assuming the Fed raises month, China’s exports annual pace and slow the
rates this year, economists have plummeted along global economy.q

Mark Flannigan makes a batch of popcorn at the Popcorn
Wagon in Pittsfield, Mass. The latest Associated Press survey of
leading economists, published Monday, Aug. 24, 2015, shows
that most economists predict tepid economic growth, weak
pay gains and modest hiring for the next two years, at least.

(Ben Garver/The Berkshire Eagle via AP)

C. S. RUGABER modest post-recession
AP Economics Writer pace of 2.2 percent a
WASHINGTON (AP) — For year, nearly six in 10 expect
much of the economy’s hiring to fall to an average
fitful and sluggish six-year of 175,000 jobs a month or
recovery from the Great below, down from its pace
Recession, analysts have of 243,000 jobs a month for
foreseen a sunnier future: the past year.
Growth would pick up in six At the start of the year,
months, or in a year. many economists thought
That was then. falling gas prices and
The latest Associated Press strong hiring would finally
survey of leading econo- produce 3 percent eco-
mists shows that most now nomic growth for 2015 as a
foresee a weaker expan- whole.
sion than they had earlier. A “We no longer have rea-
majority of the nearly three son for optimism that the
dozen who responded to economy is going to ac-
the survey predict tepid celerate,” said Mike En-
economic growth, weak glund, chief economist at
pay gains and modest hir- Action Economics. “The
ing for the next two years real question is, when is the
at least. Nearly 70 per- next downturn coming?”
cent said they thought the Other findings from the sur-
economy’s growth would vey, conducted Aug. 13-
remain below its long-run 20, include:
average of 3 percent an- — Home sales will improve
nually through 2017. The further despite a still-tepid
economy hasn’t attained economy. More than 80
that pace since 2005. And percent of economists say
if they’re right, don’t ex- recent job gains, which
pect much of a pay raise: have put about 2.9 million
Fifty-eight percent of the Americans to work in the
economists think wage in- past year, will lead more
creases for the next two Americans to buy homes.
years will remain stuck be- Sales reached an annual
low a long-term annual av- rate of 5.6 million in July,
erage of 3.5 percent. the best in eight years. And
What’s more, if growth nine in 10 of the econo-
doesn’t pick up from its mists expect millennials —