CNBC has a story about how economists are gloomy about US economy: Economists Even More Gloomy About US Prospects
Business economists are turning pessimistic about the U.S. outlook and increasingly fear economy will slip into a recession in coming months.
The National Association for Business Economics said that the 109 members who responded to its quarterly survey were “notably downbeat” about their first-quarter experience and about near-term prospects.
For the first time in five years, reports of falling profit margins outnumbered reports of rising margins in the first quarter of 2008.
“Seventy percent say they are more pessimistic than three months ago,” NABE said.
Among other concerns, 66 percent of respondents said they paid more for materials in the first quarter this year, which NABE said was the highest share since 2004. They blamed weakening markets and soaring commodity prices for squeezing profit margins.
“Thirty-nine percent of respondents stated that tightening credit conditions have negatively affected their business, up from 26 percent in January,” NABE said.
Employers were cautious about hiring, with 34 percent saying they will add jobs over the next six months and 23 percent planning to cut staff.