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BRIEFLY / ECONOMY

Slower Economic Growth Predicted

October 26, 2000|Reuters

Business leaders believe that economic growth is likely to slow next year, according to a survey released by a group of major corporations. More than three-quarters of the members of the Business Council on Economic Issues--a group of about 300 chief executives--think the blistering pace of U.S. economic growth will moderate next year, and almost two-thirds see global growth slowing from the 2000 clip. Energy prices are taking a toll, with nearly one-third of the members saying higher oil prices have affected their businesses. However, a majority of members said they were not able to pass higher energy costs through to final product prices. Labor markets remain tight, but more than one-third of executives said they should loosen next year. Separately, Federal Reserve Bank of Dallas President Robert McTeer warned that the gross domestic product report due out Friday may show a significant slowing in the U.S. economy, but added that later revisions could soften the news. "Be prepared for a fairly dramatic slowdown," McTeer said in a speech in San Antonio. The Commerce Department is scheduled to report its first estimate of GDP for the third quarter. Subsequent revisions may be higher because the month of September was probably stronger than July and August, McTeer said.

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