U.S. Economy Poised For Modest Rebound

The U.S. economy should post a modest rebound in the third quarter as moderate consumer spending resumes, the oversupply of inventories recedes and export sales improve, economists said in a survey.

“We’re still not talking about a very good growth rate. But it is a judgment that we are not slipping into recession,” said David Seiders, chief economist at the National Association of Home Builders.

The median forecast of the 35 analysts surveyed by Knight-Ridder Financial News called for 1.8 percent rate in the third quarter after 0.7 percent in the second, at a seasonally adjusted annual rate. The Commerce Department reported that the economy grew at a 2.7 percent rate in the first quarter.