Richard Curtin Pace Quotations

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 have become increasingly pessimistic about their future income and job prospects, and as a result will continue to slow the pace of their spending during months ahead.

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

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