The U.S. economy has hit a “temporary soft patch” and The PNC Financial Services Group is dialing back its projections for industrial production, according to Robert A. Dye, a senior economist for the Group.
In an Economic Outlook Webinar sponsored by the National Truck Equipment Association (NTEA) and The National Institute of Standards and Technology (NIST), in partnership with The PNC Financial Services Group, Dye said higher oil prices have been a drag. He said that after Memorial Day, prices will go down to about $3.75 a gallon nationally.
Dye said inclement weather in the first quarter also affected the economy, and flooding and tornadoes have done the same this quarter. He said oil prices and the weather are temporary, but government spending will be a drag into 2012.
“Budgets are under pressure, but the good news is that revenues are improving as the job market strengthens,” he said. “But for next year, that will be a drag. It’s not just transitory.”