N.C. Bankers Association economist: Economy 'stuck in a rut'

The U.S. economy is expected to keep experiencing slow growth, resulting in weak employment gains that are holding back consumer spending, the economist for the N.C. Bankers Association said in a report Friday.

Harry Davis said the U.S. economy "is stuck in a rut and will continue to disappoint for several more quarters." The economy is not creating enough jobs, he said, adding that many that are being produced are low-wage positions in the hospitality and tourism industry.

"Growth for high-paying professional jobs continues to disappoint," he said. Also, as companies look to cut costs, they are using more part-time workers, he said.

Consumer confidence is not improving enough, with annual growth of only about 2.5 percent, he said. Anemic salary increases and job growth, as well as higher gasoline prices, are restraining consumer spending, which makes up 70 percent of the economy, he said.

As for North Carolina, it continues to have one of the highest unemployment rates in the U.S., he said. At 8.7 percent, the state is No. 6, tied with Georgia and Washington, D.C., according to August figures.

Davis' report isn't filled with only bad news.

He said more jobs might be created in North Carolina next year because of tax and regulatory changes. The state's unemployment rate might approach 8 percent by the end of next year, he said.

He also said housing, vehicle sales and the energy sector are bright spots for the economy.