War-related anxiety holding down consumer and business spending will keep U.S. economic growth in the 2.5% to 3% range in 2003 – and postpone any significant acceleration until later in the year, according to an analysis released today by The Conference Board.
Although this situation suppresses short-term growth, Conference Board senior vp and chief economist Gail D. Fosler said it will add somewhat to the economy's strength in 2004.
"These changes do not alter the view that an underlying cyclical improvement is underway, even though the pace is, and is likely to remain, slower than one would like for most of 2003," Fosler said.
