Economic Growth of Less Than 3% Seen

The U.S. economy will grow less than 3% for the third consecutive year in 2003 as continued high joblessness slows consumer purchases, according to the latest Blue Chip Economic Indicators survey.

Economists forecast a 2.8% increase in gross domestic product in 2003, compared with a 2.4% rise in economic activity in 2002, according to the survey. Personal consumption expenditures are expected to rise 2.6%, less than the estimated 3.1% gain for 2002. Unemployment is expected to average 5.9%, close to the current 6% rate.

The survey of 54 professional economic forecasters expects the consumer price index to increase by 2.2% in 2003 after a 1.6% gain in 2002.