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WASHINGTON (AP) -- A new survey suggests the U.S. economic recovery will remain slow deep into next year, held back by shoppers reluctant to spend and employers hesitant to hire.
The latest quarterly Associated Press Economy Survey shows economists have turned gloomier in the past three months. They foresee weaker growth and higher unemployment than they did before.
According to the survey, economic growth the rest of this year and early next year will weaken, to less than 3 percent, and the unemployment rate will be no lower at the end of the year than it is now -- 9.5 percent.
As a result, the economists think the Federal Reserve will keep interest rates near zero until at least next spring.
Despite expectations of slower growth, a majority of the 42 economists surveyed believe the recovery remains on track, raising hopes that the economy can avoid falling back into a "double-dip" recession.
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