Survey: Economy Improving, Housing Lags

Business is picking up steam after nearly one year of economic recovery, says a forecast released Monday by the National Association for Business Economics.

The survey concluded that:

• Unemployment will fall to 9.4 percent by year’s end and shrink to 8.5 percent by the end of 2011.
• Inflation is expected to remain low for the next year or two, but climb within five years.
• Real domestic product is expected to rise 3.1 percent in 2010 and go up another 3.2 percent in 2011.
• Based on the decline in applications for permits to build new homes, analysts expect housing to remain a weak point.

Source: Associated Press, Dave Carpenter (05/24/2010)