Businesses Predict Slow US Economic Growth

Posted October 24th, 2011 at 10:45 am (UTC-5)
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U.S. businesses say the American economy will continue to grow, but predict expansion will slow down.

The National Association of Business Economists published a survey of companies across the country on Monday. Most said the nation’s output will have increased 2 percent or less by the end of 2011.

That is less expansion of the Gross Domestic Product than the U.S. central bank has been predicting.

The reduction in expected growth has hurt hiring, and less than one-third of companies say they expect hiring to increase in the next six months.

While most companies expect tepid growth, the world’s largest manufacturer of construction and mining equipment reported rising revenue, profits and sales Monday.

Caterpillar’s profits grew 44 percent during July, August and September. Third-quarter revenue expanded almost as much.

The firm has added almost 5,000 workers in the past few months.

U.S.-based Caterpillar operates around the world and exports much of its output.