29 January 2010 21:24 [Source: ICIS news]
HOUSTON (ICIS news)--Economists increased their expectations for US economic growth for the next two years, following the US announcement of an unexpectedly high 5.7% GDP rise during the fourth quarter.
For 2010, the economy is now projected to grow by 2.8% - a 0.1 percentage point improvement from December results in the American Chemistry Council's (ACC) Economic Forecasters Survey. Likewise, GDP growth for 2011 is now forecast at 2.9%, up 0.4 percentage point from December.
The most recent GDP increase was driven primarily by private inventory investment, exports and personal expenditures, according to the US Department of Commerce.
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Industrial output is a more meaningful benchmark than GDP for comparing the performance of basic and specialty chemicals, according to the ACC.
Modest recoveries in consumer spending, light vehicle sales and housing starts are all expected over the next two years, but at levels comparable to previous monthly surveys, the ACC said.
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