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Consumer spending may rebound this year, government spending declined at a faster rate, according to a survey of business economists.
Economists predict that the U.S. economy will grow 2.4% this year and 3% next year. This is unchanged from their forecast in February.
But they are more optimistic about the consumption and housing than three months ago, partly due to a more positive view of the unemployment problem.
Monday survey by the National Association for Business Economics, periodic surveys, economists, banks, manufacturers and universities.
Questioned between April 16 and April 30 of the 49 economists expect consumer spending to rise 2.3% this year, from 1.9% in February forecast. They are also more optimistic about the car sales, expected sales of 154,000, an increase of more than 100 million in 2012.
NABE survey, chairs and Defense Technology University business professor, said Nayantara Hensel, family values ??and a lower unemployment rate, consumer spending will get a boost from the gains in the stock market.
Housing prices going up, but also to improve the unemployment rate, people will be more willing to buy, "Hansen said in an interview with reporters.
Economists predict that housing prices will rise 4.4% this year and 4% next year. Driven by new construction, they predict that residential investment this year by 15%.
Housing starts hit a five-year peak in March, and then fell in April, most of the decline in small apartment building, you can swing wildly from month to month.
Building permits hit a new high, five years in April, suggesting that the housing market will continue to recover from the recession. A recent survey of the National Association of Home Builders, sustained optimism builders.
The NABE economists conducted a survey before the April unemployment rate at 7.5%, forecasting the end of 2014, the price will drop to 7.4% and 6.8% in the fourth quarter.
After-tax corporate profits in 2013 and 7.5%, is expected to rise 5.3% next year. More optimistic than the forecast of economists in February.
While consumers may spend more, the government sector is expected to shrink by 2.3% this year - the amplitude ratio decreased by 1%, economists forecast in February, kicked in automatically cut federal spending when Congress and the White House failed to reach a series of an agreement to avoid them. Economists expect government spending fell by 0.9% in 2014, a more moderate, but Hansen said that if it looks like the automatic cuts will continue into the next fiscal year forecast may change to a larger decline.
Reduce government spending, especially military, has been a sharp GDP growth, "she said. The gross domestic product (GDP) or gross domestic product (GDP) is a measure of the total economic output of goods and services.
The NABE survey found that the potential inflation alarm. Economists expect consumer price index rose by 1.9% this year and 2.1% in 2014.
On Friday, the Conference Committee report its dip in March, the index of leading economic indicators rose in April. A board, economists say the economy stable job growth and housing market a lift, offset by government spending cuts.