CHICAGO (October 15, 2012)--Economists believe the jobless rate will creep back above 8 percent in the coming year, but on the other hand they're upbeat about the housing market and don't think the economy will fall off a "fiscal cliff."
The quarterly survey by the National Association for Business Economists released Monday predicts growth will be weak overall, but says it should slowly accelerate through 2013.
The 44 economists surveyed now see gross domestic product, the value of all goods and services produced in the United States, rising just 1.9 percent in 2012 before reaching a 3 percent pace by the fourth quarter of next year.
The economists revised upward their previous estimate for single-family housing starts and now expect them to increase 23 percent to 750,000 units in 2012.
Continued improvement is expected in 2013.
Home prices are now projected to rise by 1.5 percent in 2012 and 2.8 percent in 2013.