Economists with the Federal Reserve Bank of St. Louis say the nation continues a modest recovery from the Great Recession. The group held a regional economic briefing Thursday at Western Kentucky University.
Economists says slow is the new normal for growth in the gross domestic product. Kevin Kliesen is a business economist and research officer at the Fed.
"You have very strong job growth," Kliesen stated. "The unemployment rate is low, somewhere around the natural rate of employment. Wage growth is picking up and consumer spending still looks pretty good."
The nation has seen brisk auto sales, solid gains in construction, and stronger growth in the services sector of the economy. However, two areas remain disappointing. Labor productivity growth is weak, and business capital spending has been soft.
Still, in the near-term outlook, the economy is expected to grow by around two percent this year. While modest increases are likely, long-term interest rates are expected to remain at historically low levels.
