Economists: Lower growth estimates, higher oil prices coming - AP

http://www.google.com/hostednews/ap/article/ALeqM5i5u_c_NZ9nMCatFkobhu4C1YO2bg?docId=8f424df9703e4a428f81ffda5bd1f834


A survey from the National Association for Business Economics predicts GDP will grow 2.8 percent this year — down from the group's February prediction that it would grow 3.3 percent. Their outlook for consumer spending and the housing market also weakened, in part because they expect oil prices to remain above $100 a barrel through 2012.

In a survey that the NABE releases Monday, a panel of 41 economists also said they "remain highly concerned" about the growing federal deficit, and said that growth in the first three months of the year had been weaker than expected.

The predictions of the economists reflect the jitteriness of a public that is still recovering from the financial crisis and now getting squeezed by rising prices for gas, groceries and other household items. Retailers of all stripes are paying more for the raw materials they need to make and transport their products, such as fuel, cotton and wood pulp, and saying they have no choice but to pass along the price increases to customers.

~~
~~

The economists said they expect GDP to grow at 2.8 percent in 2011 - a decrease from the 3.3 percent prediction they made when surveyed in late January and early February. They also lowered predictions for consumer spending growth this year (2.8 percent, down from 3.2 percent), and housing starts (610,000, down from 660,000). They also expect housing prices to fall 1.5 percent, after saying earlier that they would rise 0.4 percent.
(more)
--------------------------------------------------------------------------------------------------------------------------------

the price of oil/gasoline affects just about every product produced in our economy. Petroleum is either used as a raw material input andor hits products in transportation charges - for raw materials, intermediate products and final products transported to retail establishments all over the country. The price we pay for gas is just the tip of the iceberg.

...without doing something to limit the increases to the price of gas (like cutting consumption) get ready for a slow growth economy - an interminable recession (with stubbornly high unemployment rates) as far as the eye can see.


Cutting consumption of gas can be accomplished by driving more fuel efficient cars, using more public transportation and by producing more alternative (esp. renewable) fuels to displace gasoline and reduce demand for it.

...for what it's worth.