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Growth and hiring outlook improves

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Economists are optimistic that the recovery will continue in 2010, as the pace of job losses slows and hiring picks up, according to a survey released Monday.

In the quarterly survey by the National Association for Business Economics, all respondents expect gains in gross domestic product (GDP) this year, and 61% expect growth to exceed 2%. In the last survey in October, fewer than half of respondents expected 2%-plus growth.

"NABE's January 2010 Industry Survey provides new evidence that the U.S. recovery from the Great Recession continues, albeit at a slow pace," said William Strauss, a senior economist at the Federal Reserve Bank of Chicago, who helped conduct the analysis for the report.

Nearly a third of respondents expect hiring to increase in the first half of the year, up from 17% this time a year ago.

The outlooks were particularly strong for the financial and services sectors, with about 40% of economists expecting those industries to add jobs. Less than 15% of economists from the goods-producing and transportation sectors expect those industries to hire workers.

Signs point to a mildly easing credit crunch, with 35% of respondents reporting that credit conditions are "adversely impacting" their businesses -- a high number, but down substantially from the last two reports.

The survey results suggest the $787 billion stimulus bill passed last February is having a limited effect, with 69% of respondents reporting little impact on employment at their companies. There are 75 panelists who respond to the NABE survey -- sixty-four responded to the question regarding stimulus.  To top of page

Index Last Change % Change
Dow 15,973.84 313.66 2.00%
Nasdaq 4,337.51 70.67 1.66%
S&P 500 1,864.78 35.70 1.95%
Treasuries 1.75 0.10 6.33%
Data as of 8:40pm ET
Company Price Change % Change
Bank of America Corp... 11.95 0.79 7.08%
General Electric Co 28.26 0.81 2.95%
Cisco Systems Inc 25.11 0.43 1.74%
Chesapeake Energy Co... 1.59 -0.19 -10.67%
Freeport-McMoRan Inc... 5.53 0.64 13.09%
Data as of Feb 12
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