The latest survey of economists has shown that the economic recovery in the U.S. is likely to derive its strength from increasing spending by both consumers and businesses, according to The Wall Street Journal. On Monday, the Wall Street Journal reported that its poll of 51 economists found that gross domestic product is expected to swell by 3.5% during 2011, which is faster by 0.2% than their previous forecast and would mark the fastest growth since 2003. Meanwhile, the number of economists forecasting for double-dip recession has dropped almost in half to only 12% of respondents.
The survey showed that economists are looking to increasing business confidence to spur increased spending on equipment and hiring more workers. The upbeat outlook could lead to payroll additions that analysts in the poll expected to contribute to the continued decrease in the unemployment rate from January’s 9% to 8.6% by the end of the year. The forecast for a stronger labor market and recent retail sales gains suggest that despite lackluster consumer sentiment, Americans may start spending more which could drive economic growth.