Business Economists Raise 2012 Forecasts

Washington, DC, Feb. 27, 2012 -- Economic forecasters have raised their expectations for employment, home construction and business spending this year, according to the National Association for Business Economics.

They also maintained their forecast that gross domestic product will grow at a rate of 2.4%.

NABE economists see the unemployment rate remaining at 8.3% this year.

They also predict that builders will start 700,000 homes this year, up 15% compared with 2011. That's up from their original forecast of 660,000. They predict 850,000 will be built in 2013.

The economists also expect consumers to continue to be frugal this year. They still predict spending will increase just 2.1% this year and 2.3% next year.