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AP Survey: Outlook Dims as Economists See Slower Growth and Tepid Pay Gains for Next Two Years

Associated Press (08/24/15) Christopher S. Rugaber

A majority of nearly three dozen economists predict lackluster economic growth, weak pay gains, and modest hiring for at least the next two years, according a survey from the Associated Press. Almost 70% of the surveyed economists said that they thought the economy’s growth would remain below its long-run average of 3% annually through 2017—a pace it has not attained since 2005. Fifty-eight percent of respondents indicated that they believe wage increases for the next two years will remain below a long-term annual average of 3.5%. While many economists thought that the falling gas prices and strong hiring rates would finally produce a 3% economic growth rate for 2015 at the start of the year, there is “no longer…reason for optimism that the economy is going to accelerate,” said Mike Englund, chief economist at Action Economics.