Economist predicts better times ahead

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Orlando, Fla.--The upturn in the U.S. economy over the past few months will be sustained, according to Lawrence Chimerine, managing director and chief economist of the Economic Strategy Institute.

Chimerine, in a keynote address Wednesday at the Direct Marketing to Business conference in Orlando, said the economy should experience modest growth over the next several years.

“You’re going to see a rapid rebound in corporate profitability,” Chimerine said. He said profits bottomed out in the fourth quarter of 2001, and he forecast profitability growth rates of 20% to 30% a year from now.

That should be good news for marketing and advertising budgets. “The money will be spent because it is there because of the better profitability,” Chimerine said.

Chimerine also predicted that spending on tech and non-tech capital goods, which dropped dramatically in recent years, will pick up in the next six months.

--John Obrecht

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