The Blue Chip Economic Indicators Survey Says Recession to End by Second Half of this Year

The Blue Chip Economic Indicators survey, which since 1976 has polled America’s top business economists, collecting their forecasts in terms of economic growth, inflation, interest rates, and a host of other critical indicators of future business activity, released on Friday its findings. The survey showed that 86% of respondents believed that the economic contraction would be declared to have ended in the second half of this year.

“Real GDP contracted very sharply during the first quarter of [2009] and will continue to shrink, albeit more slowly in the second quarter before turning very modestly higher in the third and fourth quarters,” the survey said.

According to the survey real GDP would contract by 2.6% this year on a Y/Y basis. Meanwhile, spending will be sustained by tax cuts from the government’s $787 billion stimulus package. The survey also said: “The huge output gap created by the recession implies that unemployment will continue to rise well into 2010.” [via Reuters]

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1 Comment on The Blue Chip Economic Indicators Survey Says Recession to End by Second Half of this Year

  1. *Network: This is more than just telling a few friends that you are currently out of work. Talk to anyone and everyone that you know and who they know and explain what you are looking for in your job hunt and exactly what skills you have. By doing this you will uncover the ‘hidden’ job market, which are jobs that are not typically advertised.

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