ABA economists see slowing

Northwestern Financial Review, Jul 15-Jul 31, 2008

The Economic Advisory Committee of the American Bankers Association said on June 17 that the economy will continue to experience slow economic growth this year and into 2009. "Although tax rebates are providing some near-term lift to spending, households will continue to face a multiplicity of negative forces, including energy and food prices, restrained credit conditions and declining home prices," said committee chair Peter Hooper, Deutsche Bank Securities, New York.

The consensus EAC opinion is that real economic growth will slow to around 1 percent this year, following a trend-like 2.6 percent in 2007, with the unemployment rate rising to 5.75 percent by year end.