The Conference Board recently revised it 2004 economic forecast, projecting that real GDP growth will hit 5.7 percent this year, making 2004 the best year economically in the last 20 years. The forecast expects worker productivity, which set a 20-year record in the third quarter, to rise at a healthy 3.6 percent this year, following a gain of 4.3 percent in 2003.
"Growing business spending and continued strength in consumer spending are generating growth throughout the U.S. economy," said Conference Board Chief Economist Gail Fosler. "While the labor market, a critical factor in sustaining growth, is growing slowly, a pick-up in hiring may already have begun." Real consumer spending, which continues to fuel growth, will increase at a 4.7 percent pace this year, up from about 3.2 percent in 2004. A gain of 4.3 percent is projected for 2005, according to the report. While the U.S. economy is expected to generate more than one million new jobs, the unemployment rate will edge down only slightly, averaging 5.6 percent in 2004.