27 June 2012 21:26 [Source: ICIS news]
HOUSTON (ICIS)--The American Chemistry Council (ACC) said on Wednesday it expects the second half of 2012 to experience slow US economic growth, largely because of concerns about the eurozone and weaker Asian economies.
The ACC’s Mid-Year 2012 Situation & Outlook report cited an expected growth rate of 2.2% for the US GDP, up from a 1.7% growth rate in 2011 but down from 2010’s rate of 3.0%.
The report cited improvements in investment spending and residential investment as the main bright spots for 2012, while also citing lower energy costs being able to increase consumer spending.
The report projected that US consumer spending will increase by 6.1% year on year, with auto sales and home starts also improving.
However, low wage growth and high levels of unemployment will push down on US economic recovery.
US unemployment rates were projected at 8.1%, down from 2011’s level of 9.0% but higher than levels between 4.6-5.8% seen from 2004-08.
The report said that much of the concern for the US market stems from uncertainty regarding the resolution of the eurozone debt crisis as well the slowdown of Chinese manufacturing.
Both of these are expected to curtail demand for US exports. The outlook for the global economic GDP has fallen to 2.3% for 2012 and to 2.9% for 2013.
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