Fears of Economic Stagnation Remain High
Date: 7/29/2010
A recent survey of prominent economists is predicting that the currently spotty growth in the economy is likely to remain in place well into 2011.

According to the Associated Press, its quarterly Economy Survey finds that a majority of 42 economists surveyed believe that the economy is still basically moving forward, although projections for growth and unemployment are not as positive as they have been in the recent past.

The AP survey also predicted an economic growth rate below 3 percent for the rest of this year and early 2011, as well as a 9.5 percent unemployment rate at the end of 2010 and increasing state budget difficulties that will show more effect on the economy as time goes on. The survey also reportedly found many experts believing that the unemployment rate will not fall below 5 percent until 2015 or later.

On Thursday, the Department of Labor reported that 457,000 workers filed initial unemployment claims. This marked a modest decline from the previous week's figure of 468,000. The four-week moving average for these claims was also down slightly to 452,500.

Earlier in the week, investors also had reason for concern about the economy in the form of a government report showing lower orders for durable goods.