U.S. bankers and chief executives are not losing their faith in the ongoing economic recovery despite several weeks of poor economic reports.
A report Tuesday from the American Bankers Association , an industry trade group, forecasts the country's total economic output will grow at a rate of 3 percent through the end of 2012.
Meanwhile, a survey of chief executives by Business Roundtable found 87 percent expect increased sales over the next six months while more than half plan to hire more workers.
Despite the optimism, both groups say the U.S. economy is still facing some significant challenges, including a recent period of higher gasoline prices and wary consumers who are not convinced a recovery has taken hold.
The ABA's Economic Advisory Committee predicts economic growth will lead to the creation of 2 million jobs this year and another 2.5 million jobs next year – enough to bring the U.S. unemployment rate down from more than 9 percent in May to just under 8 percent at the end of 2012.
Still, the ABA says that is still less than half of the jobs lost during the recession.
Separately Tuesday, the U.S. Commerce Department said retail sales declined in May because of a sharp drop in sales of automobiles.
Tuesday's report says U.S. auto sales slowed when Japan's multiple disasters hampered production of auto parts.
This is the first decline in retail sales in nearly a year. Experts watch retail sales because consumer demand drives most U.S. economic activity.
A separate measure of inflation at the wholesale level rose two-tenths of a percent. That is less than the gain in prior months because food prices declined and gasoline costs rose more slowly. This data is called the Producer Price Index and provides clues about future inflation at the consumer level.
On Wednesday, experts will publish the latest information on inflation. Economists surveyed by news organizations predict the study will show a modest increase in prices.