A monthly survey of economic professionals conducted by the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) indicates prospects for the U.S. economy for 2011 “have changed for the better,” according to the ACC’s latest Weekly Chemistry and Economic Trends report. The group of economic experts, mostly from industrial companies and consultancies, has expertise in the dynamics of the manufacturing sector.
The upwardly revised expectations are the result of the recent compromise within the U.S. Congress on extending the tax cuts introduced during the Bush Administration, and “rising confidence among business leaders and consumers,” the ACC report says.
Taking the average of the economists’ predictions, U.S. gross domestic product (GDP) is projected to rise by 3.1% in 2011 and 3.2% in 2012. The forecasts also say consumer spending will be 3.3% higher and business investment is predicted to be 8.8% higher.
The ACC report also pointed out that the current GDP, which rose during the 4th quarter of 2010, is now ahead of its pre-recession peak, indicating that the economy is moving into an expansion phase.
Outside the U.S., data cited by the ACC showed a decline in industrial production in Taiwan and Singapore, as well as lower economic growth in South Korea and the U.K. Despite those results, “the consensus appears to remain for a continued recovery of global economic activity,” the report says.