Richard Curtin Growth Quotations

The sharp and sudden swing in consumer expectations was due to mounting fears among consumers that weak job growth and global job outsourcing may pose a threat to their future living standards.

Prospects for the economy have improved substantially from the lows recorded following the Gulf Coast hurricanes and the surge in gas prices. Firms still expect a slower overall pace of economic growth during 2006 than in 2005. The expected growth slowdown is mainly due to anticipated increases in interest rates. Firms are much more optimistic about their own prospects in 2006, as they expected strong growth in revenues and profits.

Consumers anticipated that higher interest rates will ultimately slow the overall pace of economic growth.

The growth slowdown anticipated by consumers is very mild, but just enough to result in smaller job gains and a somewhat higher unemployment rate during 2006.

Although firms did expect a slightly slower pace of growth, they still judge overall economic conditions quite favorable.