In a July 13, 2012 file photo a demonstrator challenges the police officers during a protest against the recent austerity measures announced by the Spanish government, in front of the Popular Party in Madrid, Spain. A survey by the National Association for Business Economics released this morning says economists are gloomy about short-term growth in part because of Europe’s financial crisis. (AP Photo/Andres Kudacki, file)DAVID KOENIG
DALLAS (AP) – Economists say the sales and profit gains of early this year are disappearing, and they are increasingly pessimistic about short-term growth.
They also are gloomy because of the potential impact in the U.S. from Europe’s financial crisis, the possible expiration of the Bush tax cuts in December, and the prospect of major cuts in federal spending.
A survey by the National Association for Business Economics released Monday also found less evidence of hiring, confirming the trend in recent monthly jobs reports from the government.
In the quarterly survey of 67 economists who work for companies or industry trade groups, 22 percent reported rising employment in July, down from about 30 percent in the last three surveys and 42 percent a year ago. On the positive side, only 9 percent said employment was falling. The rest said it was unchanged.