The US economy may grow at its fastest pace in six years in 2004, according to a new survey of US economists. Blue Chip Economic Indicators said its poll of over 50 professional forecasters found the consensus view for 2004 growth had risen to 4.2pc from the 3.9pc expected only a month ago. The improved outlook follows data showing that the US economy expanded at a faster than expected 7.2pc annual rate in the third quarter of the year and that 57,000 jobs were created in September. The survey was taken on November 1 and 2, before the publication of revised September figures and the new October data showing that non-farm payrolls rose by 126,000 last month.
More than half of the respondents said they expect the Federal Reserve to begin raising interest rates, which are currently at a 45-year low of 1.0pc, before July 2004. The economists also upgraded their outlook for the fourth quarter, to 3.8pc from 3.7pc. They left their outlook for unemployment unchanged, saying the jobless rate would average 5.9pc in 2004. The unemployment rate fell to 6.0pc last month from 6.1pc in September, according to Government figures last Friday. //www.fxcentre.com