In a significant shift, Wall Street is dialing out the worst possible economic outcomes for 2013, although it’s still forecasting tepid growth.
The January CNBC Fed Survey finds respondents lowering the chance of recession in the next 12 months to 20 percent from 28.5 percent in the December — the first time it’s been lowered in seven months.
The survey’s 52 respondents also raised their forecast for 2013 year- over-year economic growth to 2.08 percent. It’s only a small increase from the December forecast of 1.91 percent, but it’s the first time it’s been raised since March. The first look at 2014 suggests an improving outlook with GDP growth estimated at 2.56 percent.