Growth seen for U.S., stagnation on LI

The U.S. economy will grow moderately this year with increased spending by businesses, though Long Island may lag, two experts said today.

Irwin Kellner, chief economist for the information service MarketWatch.com, predicted the national economy would expand between 3 and 3.5 percent in 2012, an improvement over 2011. He said much of the growth would be fueled by businesses replenishing inventory in anticipation of consumers again opening their wallets.

“It won't be a boom year, but it will be a good year,” Kellner told about 120 members of the Association for Corporate Growth.”

Greg David, former top editor of Crain's New York Business, said layoffs and fewer cash bonuses on Wall Street would dampen the regional economy, including Long Island's.

“As the national economy accelerates, the drag of Wall Street means the regional economy stagnates,” David told the meeting at Hofstra University.