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Economic Forecasters See US Advance

  • Ken Bredemeier

A shopper walks past a 100-foot U.S. flag that will be on display to honor veterans until July 4th, in a department store in Chicago, Illinois, May 23, 2014.

A shopper walks past a 100-foot U.S. flag that will be on display to honor veterans until July 4th, in a department store in Chicago, Illinois, May 23, 2014.

Economic forecasters say they expect the American economy to advance at a faster pace in the coming months.

The U.S. economy shrank one percent in the first three months of the year.

But the National Association for Business Economics said Monday its group of 47 forecasters expects growth to advance at an annual pace of more than 3 percent in each of the last three quarters of 2014.

The professional group's president, Jack Kleinhenz, National Retail Federation chief economist, says the consensus is the U.S. economy will rebound at an annual advance of 3.5 percent in the current quarter, with smaller jumps in the second half of the year.

The group is predicting 2.5 percent growth for the year as a whole, down from an earlier 2.8 percent projection.

The economists say they expect the country's labor market to add an average of 209,000 jobs a month this year.

That is near the number added in May, with the national unemployment rate dipping slightly from the current 6.3 percent level.

They predicted the country's central bank, the Federal Reserve, will continue to trim its purchase of securities to support the U.S. economy and end them altogether in late 2014.

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