Published : 2013-11-01 21:49
Updated : 2013-11-01 21:49
The U.S. economy will probably expand at a 2 percent annualized rate in the final three months of the year, less than economists projected at the start of the budget impasse that resulted in a 16-day government shutdown.
The median projection of 71 economists surveyed by Bloomberg yesterday compares with a 2.4 percent forecast in an Oct. 4-9 survey.
Gross domestic product, the sum of all goods and services produced in the nation, will accelerate to a 2.6 percent growth rate in the first three months of 2014, unchanged from the previous survey, economists said.
Fourth-quarter GDP will reflect a decline in government output, estimated by the number of hours put in by federal workers, as well as cutbacks at contractors.
Growth will pick up in the first quarter as the economy recovers from any shutdown- induced pause in business and consumer purchases.