Consensus Forecasting Group Continues Cautious Approach

From Kentucky Public Radio’s Tony McVeigh

A panel of experts that advises Kentucky’s governor and legislative leaders on economic matters is continuing to take a cautious approach.

Nationally, the recession appears to have bottomed out in June, retail sales are up, gas prices are relatively stable, but credit markets remain tight and employment is not expected to rebound until next year. Kentucky is showing some signs of recovery, too, but it’s modest improvement.

“We’re not in the worst group of states, but we’re closer to the worst group of states than the best group of states because we are an industrial kind of state and that’s the ones that are hurting the worst,” says Larry Lynch, who chairs the Consensus Forecasting Group.

The panel met in Frankfort to look at the latest economic indicators. They’ll be back in October to predict revenue growth on which to base the next biennial budget. Lawmakers will approve the budget in the 2010 General Assembly, which convenes in January.