Economy Stuck at Current Growth Rate for Some Time, Says PNC

The economy is 'cruising' at a 2 to 2.5% range, and that's probably the best growth we will experience for a while, according to Stuart Hoffman, Sr. Vice President and Chief Economist at PNC Financial Services. Hoffman commented on the outlook for the economy at Camp Kotok, an annual retreat for economists and money managers held each year in Grand Lake Stream Maine. Hoffman noted that even though the economy added 215,000 jobs in July, this year's monthly job gains are running below last year's gains of 260,000 jobs each month. Hoffman also said that low productivity is keeping wage gains muted. 'Productivity is a fundamental thing that is holding the economy back,' said Hoffman. He added there are several ways to get the economy moving at a faster clip. 'Education, less regulation, but these are cumulative over time. I'm not sure what anyone can do in the next year or two to somehow take us from 2% up to 4% on a sustainable basis.'