Economists See Improving Jobs, Housing Markets

Washington, DC, May 21, 2012 -- Economists are growing a little more optimistic about recovery in the job and housing markets, according to a surevey by the National Association for Business Economists.

NABE says its forecasters expect modest growth for the remainder of the year, with higher growth next year.

However, the NABE survey showed the economists expect consumer spending, business investment and gross domestic product to remain somewhat muted.

The panel now expects average monthly job growth for 2012 of 188,000, up from its forecast in February for 170,000 new jobs per month in 2012.

By the end of next year they expect the unemployment rate to fall to 7.5%.

The economists also expect housing starts to rise 18% to 720,000 units this year and increase again to 850,000 in 2013.

Residential investment is forecast to increase 8.8% this year.