Growth prospects for the U.S. economy this year are brightening considerably as Americans get vaccinated from the coronavirus and Congress closes in on another massive fiscal relief package.
The latest Bloomberg monthly survey of economists shows the pace of growth in the first quarter will be twice as fast as respondents expected just two months ago. Growth estimates were also revised up for subsequent quarters through year-end.
GDP is projected to rise an annualized 4.8 percent in the current quarter, up from 3.2 percent in the February survey and 2.3 percent in January, according to the median forecasts in a Feb. 26-March 3 survey of 67 economists. Economists also boosted their inflation forecasts, though only slightly.
The vaccine rollout “seems to be going well and that raises the odds of an earlier and broader re-opening in 2Q,” said James Knightley, chief international economist at ING Financial Markets. With “the red-hot housing market that is fueling a construction boom, and the solid manufacturing numbers and the positive investment backdrop, we have revised up our growth and inflation numbers.”