The October 2013 National Association for Business Economics Industry Survey report indicates that the economy continues expanding at a moderate pace.
"Sales growth accelerated in the third quarter, despite potential headwinds such as rising interest rates and oil prices, and a renewed wave of policy uncertainty," said Timothy Gill, chair of the NABE Industry Survey Committee and Deputy Chief Economist at the National Electrical Manufacturers Association. "Profit margins rebounded after weakening in the previous quarter, while gains in capital spending matched those reported in the first half of the year."
In contrast, Gill said, employment growth slowed in the third quarter, although still solid. Wage and salary growth slowed in the quarter as well, while plans for near-term hiring and capital spending moderated.
Despite the fluctuations, Gill said, "The latest readings for most of these indicators fall broadly in the middle of ranges observed in the current and in previous business cycle expansions."
Gil noted that survey panelists' expectations for economic growth in the coming year ere slightly more upbeat than they were in the previous survey, in July.
Survey results showed that:
* nearly 70% of respondents forecast that real GDP will grow in the 2%-3% over the next four quarters, about the same as in the July survey
* nearly 20% expect 1%-2% GDP growth, about the same as in the July survey
* slightly fewer panelists than in July expect real GDP growth below 1% in the coming year
* slightly more than in July forecast GDP growth 3% or higher
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