Economic Outlook

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Friday, January 14, 2011 - 2:54pm

Experts believe economic growth and rising prices are on the horizon.

Your bill at the grocery store, the gas station and even the power company, could go up this year.

What those companies pay rose just over one percent last month. The largest increase in almost a year.

Even without food and energy, producer prices went up.

Brian Westbury the Chief Economist for First Trust Advisors said, “That inflation will eventually, and I think within about six months, hit the consumer, and we're going to see consumer prices begin to rise."

But the Federal Reserve predicts three to four percent growth this year.

Federal Reserve Chairman Ben Bernanke said, "That's not going to reduce unemployment at the pace we'd like it to but certainly it'd be good to see the economy growing."

Some companies, like this small software firm in Virginia, say better business will mean more jobs.

David Stokely, CFO of Group Logic said, "As our business increases, we're certainly looking to hire."

The biggest growth in their business is overseas. But to get the economy here moving again, experts say the U.S. will have to reign in our massive trade deficit with China.

Scott Paul, Executive Director of the Alliance for American Manufacturing said, "We haven't stood up to China and said enough is enough. We gotta bring it into balance."

Today banks will share their predictions for 201, and be on the lookout for December sales numbers to see if what you spent over the holidays really made a difference.


 

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