SAN FRANCISCO, Sept. 10 (UPI) -- U.S. economic growth will slow in 2008 amid continued credit problems and growing fears of a U.S. recession, a national research group said Monday.
The National Association of Business Executives pared its 2008 forecast of economic growth to 2.8 percent from 3.1 percent, with most of the slowdown in the year's first half.
The 2008 slowdown will be "across major spending categories," President-elect Ellen Hughes-Cromwick and Ford Motor Co. chief economist said.
Consumer spending will grow 2.5 percent, down from 2.8 percent and import growth will slip to 4.2 percent from 4.9 percent, the group forecast.
Growth in U.S. housing starts will fall 100,000 units to 1.4 million, the group said.
A recession was "the major risk facing the economy over the next year," more than 60 percent of NABE panelists said.
A third of the panelists said inflation was the greatest problem.
The panelists also said they expected the U.S. Federal Reserve to lower its benchmark interest rate a half-point in late 2007 and early 2008 and then hold steady at 4.75 percent.
Markets expect the central bank to lower the rate from the current 5.25 percent when the Federal Open Market Committee meets Sept. 18, but the extent of the expected cut isn't clear.
