Economists expect stronger growth by early 2014

Business forecasters maintained their rosy view of the U.S. economy in 2014, predicting 3 percent growth by the second quarter of next year, low inflation and improving employment.

The top economists surveyed by the National Association of Business Economics between Aug. 8 and Aug. 20 also said there's an 80 percent likelihood that the pickup in growth will prompt the Federal Reserve to trim its monthly $85 billion purchases of mortgage bonds and Treasury bills next year.

The NABE's 43 respondents said in a report released Monday that there's a 45 percent chance the Fed will begin its so-called "tapering" as early as this year. But economists trimmed their expectations for the second half of 2013 since the last survey, in May. The economists predicted that real gross domestic product would grow at a 2.3 percent annualized rate in the third quarter through September, down from 2.5 percent seen earlier; and 2.6 percent in the fourth quarter, down from 2.8 percent seen earlier.

They were less optimistic about consumer spending, industrial production and private investment in nonresidential structures, equipment and software. The economists' slightly more pessimistic views were likely affected by the government initially reporting in July that second-quarter GDP grew 1.7 percent.

On Aug. 29, the Commerce Department revised the figure sharply higher for the April-June quarter, to 2.5 percent. "It's fair to assume that they reduced their outlook for GDP because they had seen weaker business investment across the board," said Ken Simonson, chief economist of the Associated General Contractors of America and an NABE analyst who helped compile the report.

"The big takeaway is that the forecast now, like in May, is for gradually improving conditions, getting up to ... growth of 3 percent in 2014 and holding there."

The last time the economy grew more than 3 percent over one year, on average, was in 2005. NABE economists predicted that the consumer price index will grow just 1.3 percent in 2013 and 1.7 percent in 2014 when excluding volatile food and energy prices. The unemployment rate is seen falling to 7 percent next year from 7.5 percent this year, with the economy adding on average 199,000 non-farm jobs a month next year.

The dollar is seen holding steady against the European currency at $1.30 per euro next year, compared to an expected $1.31 in 2013.

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Water, sewer projects needed for Lakewood's future growth

LAKEWOOD — A $10 million water and sewer project is in the works to accommodate a population explosion that will make the township one of the state?s largest municipalities, officials said.

It is the second phase of New Jersey American Water?s upgrades to the township infrastructure. The first phase, which began in spring 2012, has been completed, said Richard Barnes, spokesman for the water company. Though the cost of the first phase was not available, initial estimates were $3 million.

Township planners contend the work is needed as they brace themselves for a rapid growth in residents.

Lakewood has a population of about 92,000, according to the 2010 census. But by 2030, planners estimate Lakewood?s population could more than double, becoming home to as many as 200,000 residents.

Planners have said Lakewood's current family growth rate of about 50 percent each decade coupled with an influx of people to the municipality are driving the anticipated population explosion. Lakewood is the seventh largest municipality in the state.

Officials at the water company, along with Greg Stafford-Smith, chairman of the Lakewood Utilities Advisory Council, have been working to initiate projects that would provide infrastructure, increase the local economy and serve the township?s fastest growing areas.

But the multimillion dollar project could mean rate hikes for NJ American Water customers. The company must present the project?s progress and make rate increase requests to the state Board of Public Utilities, Barnes said. Water and sewer bills in Lakewood will not directly reflect expansions in the township but an overall statewide rate increase to cover the cost of the work could be imposed.

NJ American Water is based in Voorhees and is a subsidiary of American Water. The company serves 2.5 million customers in 17 of New Jersey?s 21 counties, including Monmouth and Ocean.

The township Planning Board recently adopted a 2013 Smart Growth Plan, which focuses on creating centers of population and commercial clusters within the township. The water company?s work is focused in areas shown to be designated for highest growth of residential properties, schools and commercial growth.

The infrastructure improvements interest Lakewood developers stymied by a moratorium on new sewer connections along Route 9 where the township has reached capacity, officials said. The construction of water and sewer lines will open up that corridor again, allowing the water company to process more than one million gallons of sewage daily.

The first phase ? the Vine Street sewer extension in spring 2012 ? installed new pipes between Oak and Spruce streets.

The second phase of the project will stretch from the intersection of Route 9 and Broadway through Oak Street and connect to the first phase, officials said.

This design has been submitted to the state Department of Environmental Protection. Company officials hope to receive the needed permits by fall. The goal is to complete construct in about a year.

?We are likely to open that sewer connection on the south side of Route 9 in the fall of 2014,? said Suzanne Chiavari, vice president of engineering for NJ American Water. ?This will help developers plan their projects.?

Another project will involve new water mains on Cross Street and Prospect Avenue. A new water storage tank will serve the area near Massachusetts Avenue.

?We are working with the county to determine their repaving schedule of Prospect, where we have plans to install mains,? Chiavari said.

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