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Southeast Missouri economists predict modest growth for the rest of the year

Jun 25, 2012 -- 11:33am

 

The Southeast Missouri Business Indicators summer survey predicts modest growth in the economy through the end of the year.  G-D-P posted a weak 1-point-9-percent rise in the first quarter of the year due mostly to a slowdown in federal and local government spending.  The European debt crisis continues to be a drag.  But the Indicators expect the national economy to grow by about 2-point-5-percent through December, unemployment to dip to just below 8-percent, and new housing starts to rise slightly.  Southeast economist Bruce Domazlicky tells KZIM KSIM the good news is that factories are producing today near pre-recession levels.  Domazlicky says locally, employment is 45-hundred jobs less than at this time last year, although the unemployment rate regionally is down from 10-point-5 to 8-point-9-percent.  Southeast Missouri personal incomes and retail sales are growing by 4-percent from a year ago.  But he says the rate of growth is slowing which may hurt local spending if the national economy doesn’t pick-up. 

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