The National Association for Business Economists said the panel of 47 economists it surveyed now expects US GDP growth of 5.6%. Although that’s still strong, it marks a downgrade from May when business economists anticipated 6.7% growth. Economists also sharply cut their call for third-quarter growth to an annualized pace of 4%, down from 6.6% in May.
The good news is that business economists share the Federal Reserve’s view that high inflation will prove to be temporary as the economy continues to adjust to Covid. Consumer prices inflation is expected to moderate to 2.4% by the fourth quarter of next year, NABE said.