Contact Us

U.S. Budget Impasse Holding Back Economy

Brendan Hoffman/Getty Images

WASHINGTON (AP) — The latest Associated Press Economy Survey suggests the biggest drag on the economy is the continued budget impasse in Washington, not the slow pace of consumer spending.

The consensus has emerged just as the political standoff could lead to automatic spending cuts later this week.

Twenty-three of the 37 economists who responded to the survey last week say the paralysis in Washington is a significant factor in slowing the economy. The next-biggest factors they cite, in order: too little job growth, excessive government regulation and taxes, stagnant wages and cautious bank lending. Only eight say they worry about consumers saving more and spending less.

The budget impasse that will set off $85 billion in spending cuts starting Friday will shave an estimated half-percentage point from economic growth this year.

Best of K2 Radio

Recommended For You

Around the Web

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to http://k2radio.com using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for K2 Fan Club quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive K2 Fan Club contests, events, coupons, presales, and much more delivered to you for FREE.