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Economic growth forecast for US boosted to 2.4%

US economic growth forecasts for this year were raised for the first time in a year after revised government statistics showed a stronger first-quarter economy, a private survey found.

The world's largest economy is forecast to expand 2.4 percent this year, up from last month's estimate of 2.3 percent, based on the consensus estimate of 53 economists surveyed this month by Blue Chip Economic Indicators, a Kansas City, Missouri-based publication.

That was the first improvement in the forecast since last June, when the consensus estimate expected the US economy would grow 3.6 percent this year.

"Expectations about the pace of US economic growth in coming quarters underwent little alteration over the past month," the report said, suggesting the improvement was driven solely by last month's revised first-quarter GDP report.

The statistics showed the economy grew at a 1.9 percent annual pace from January to March instead of the previously announced 1.6 percent increase, the Blue Chip report said.

The consensus called for growth this quarter to reach a 2 percent annual pace, down from a 2.1 percent forecast last month.

Economic growth will then accelerate to 3.5 percent from next month to September and improve to 3.7 percent by the last three months of the year, the same as projected last month.

The forecast for next year held at 3.6 percent, where it's been every month this year except for a dip to 3.5 percent registered in April.

In the survey, a better outlook for disposable personal income, consumer spending, and corporate profits was almost offset by greater pessimism about corporate spending and industrial production, the report showed.
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