Newspaper article THE JOURNAL RECORD

Business Advisers See Growth Reviving Lackluster Economy

Newspaper article THE JOURNAL RECORD

Business Advisers See Growth Reviving Lackluster Economy

Article excerpt

WILLIAMSBURG, Va. (AP) _ Chief executives of the nation's largest corporations were told Thursday that the lackluster economic performance during the first half of this year was a temporary setback and that growth already had picked up.

Senior economic advisers to the 111 active and retired chief executives attending the meeting of the elite Business Council forecast an economic growth rate of 3.1 percent during the second half of this year and in 1994.

That's more than double the first half's 1.3 percent growth rate in the gross domestic product, the sum of all goods and services produced in the United States.

The advisers "are in unanimous agreement that the slowdown ... in the first half of this year was a temporary lull and that the economy is already improving," their report said. "None ... expects either recession or boom."

The business leaders, all chief executives of Fortune 500 corporations, gather twice a year to hobnob on tennis courts and golf courses and meet behind closed doors with senior government officials.

This time, they're expected to hear a pitch for the North American Free Trade Agreement from U.S. Trade Representative Mickey Kantor. Deputy Treasury Secretary Roger C. Altman and White House economic adviser Laura Tyson also are attending.

Although moderately optimistic, the corporate economists saw some risks that could cause their forecast to go awry, including "higher taxes (and) uncertainty about health care costs."

They also saw a chance that growth in one of the strongest areas of the economy _ business spending on new equipment _ could slow a bit, from a rate of 15 percent over the past year to about 10 percent in the second half and in 1994.

"Orders and shipments for high-tech equipment including desktop and laptop computers and mobile communications equipment continue to grow rapidly, although some gradual slowing from the unusually rapid pace of the past year is anticipated" they wrote. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.