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Outlook good for outlooks
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COSTLOW_TERRYFor the past 17 months, I've been remodeling a house, a long, slow process when it's done evenings and weekends. Schedules are something that are almost laughable: Either the job takes way longer than I thought or I find something more compelling or interesting to do, leaving the house untouched.

Though I'm not much good at predictions, that's probably because I'm just an amateur with no professional training in construction. Otherwise, my timetables would be just right. At least, I hope so when I look at the outlook from planners in another field, particularly the economists who make up the National Association of Business Economics. They say that the U.S. won't slide into a recession and that the gross domestic product will rise 3.1 percent next year. That's down from their earlier prediction of 3.5 percent GDP growth, but it's still growth. By comparison, the NABE survey released last week stuck with the view that the GDP will rise 2 percent this year.

About a third of the economists say the U.S. will fall into a recession this year, but only a quarter predict that sad state of affairs for next year. They also expect "moderate gains" for the stock market. Inflation will fall from the projected 3 percent this year, rising only 2.5 percent next year.

For those who haven't decided what's caused the current slump, which isn't a recession despite the way most everyone in the electronics industry feels, the NABE reiterated its earlier comments. "A classic inventory correction and the impact of last year's Fed tightening" caused the meltdown in technology and the slowdown in other fields.

Then there's one prediction I could have made myself. It's that with Alan Greenspan's aggressive moves of late, short-term interest rates will be substantially lower in 2001 and 2002. The economists feel that the latest moves by the Fed board have been "just right." That could well be true. We all better hope so.

Overall, their comments are that even though the outlook is cloudy and corporate profits are under pressure, "ABE panelists have remained steadfast in their belief that a recession is unlikely."

As I remodel my house, I'm keeping a close eye on these economic outlooks. Right now, it looks like my plan for completion and their plan for economic recovery will merge perfectly. I'll complete it just as the economy booms and home prices skyrocket from pent-up demand. But that's in the future. Tonight, I'm planning to watch the Chicago Cubs, hoping they can live up to last month's predictions that this is the year they get to the World Series.





The views and opinions expressed in this column are strictly those of the author and should not be taken as an editorial position of EE Times or any of its other editors, publications or Web sites.


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