Expectations for 2010 US GDP growth rise again – chem group

19 February 2010 23:15  [Source: ICIS news]

HOUSTON (ICIS news)--Economists for a second consecutive month increased their expectations for US economic growth in 2010 behind an improvement in business confidence, according to a survey released by a chemical industry group on Friday.

In the American Chemistry Council’s (ACC) Economic Forecasters Survey, economists now project the economy to grow by 3.1% in 2010 - a 0.3-percentage-point improvement from the 2.8% in GDP growth in January’s survey and up from a 2.4% decline in 2009.

The improvement was led by an improvement in expectations for business investment, which is now expected to rise 1.1% in 2010 - up from a 0.3% expected decline in January’s survey.

Likewise, expectations for 2011 business investment also rose, moving to 7.5% - up by 0.3 percentage points from the previous month.

Separate economic surveys from the Philadelphia and New York Federal Reserve branches reflected similar optimism, with indexes of current conditions showing improvement in both areas, the ACC said.

Both regions are critical to chemicals production. New York has the third-largest state chemical industry in the US with $37bn (€27bn) in shipments, while the Philadelphia region is home to a number of companies with a focus on fine and other specialty chemicals, finished pharmaceuticals, and some inorganic chemicals, the ACC said.

($1 = €0.73)

Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
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By: Ben DuBose
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