Economists predict increase in US consumer spending

Associated Press

WASHINGTON

Consumer spending is likely to pick up this year while government spending declines at a faster rate, according to a survey of business economists.

The economists predict that the U.S. economy will grow 2.4 percent this year and 3 percent next year. That’s unchanged from their forecast in February.

But they are more bullish on consumer spending and housing than they were three months ago, in part because of a more-positive view about unemployment.

The survey was released Monday by the National Association for Business Economics, which periodically surveys economists for banks, manufacturers and universities.

The 49 economists who were questioned between April 16 and April 30 predicted that consumer spending will rise 2.3 percent this year. They also predicted 15.4 million vehicle sales, an increase of 1 million over 2012.