Richard Curtin Prospects Quotations

Prospects for the economy have improved substantially from the lows recorded following the Gulf Coast hurricanes and the surge in gas prices. Firms still expect a slower overall pace of economic growth during 2006 than in 2005. The expected growth slowdown is mainly due to anticipated increases in interest rates. Firms are much more optimistic about their own prospects in 2006, as they expected strong growth in revenues and profits.

Although higher income and employment levels have offset the impact of rising gas prices on consumer confidence, there is a considerable degree of dread about future prospects among middle- and lower-income households.

The gap in how low- and high-income households view their current finances and future prospects is the widest in two decades. It's an unusual circumstance.