NAM Economist Sees Stronger Growth Ahead

Washington, DC, June 27, 2011 -- While much of the economic data last week was somewhat negative, some economists believe the Federal Reserve may start raising interest rates later this year as the economy picks up steam.

Chad Moutray, chief economist for the National Association of Manufacturers, is one of those economists.

"The economy is expected to improve somewhat in the second half of 2011," Moutray said.

"I am forecasting 2% growth in real GDP for the year overall, with 3.3% growth next year. Neither figure represents strong growth, but it might be enough to free the Fed to tackle inflation if it senses that core price increases are becoming a problem."

He noted that manufacturing production is picking up again. Data later this week could confirm that trend.