AP Survey of Economists Predicts Slow Growth

Washington, DC, July 29, 2010--A survey of leading economists by the Associated Press suggests that the economic recovery will remain slow deep into next year, held back by shoppers reluctant to spend and employers hesitant to hire.

The latest quarterly AP Economy Survey shows economists have turned gloomier in the past three months. They foresee weaker growth and higher unemployment than they did before. As a result, the economists think the Federal Reserve will keep interest rates near zero until at least next spring.

However, AP reports that a majority of the 42 economists surveyed believe the recovery remains on track, raising hopes that the economy can avoid falling back into a "double-dip" recession.

The economists believe that economic growth the rest of this year and early next year will weaken to less than 3%.