US outlook better

WASHINGTON (Reuters) – The US economy will resume expansion this year and continue in 2011 after shrinking in 2009, according to a survey of top economists who forecast the strongest growth next year since 2004.

Private economists polled for the Blue Chip Economic Indicators survey polled on January 6-7 said gross domestic product in 2011 will expand at a 3.1 percent growth rate after a 2.8 percent rate of growth in 2010.

"Encouraging data on November wholesale inventories offset a disappointingly weak December jobs report, no doubt prompting many of our panelists to further boost their estimates of Q4 GDP growth."

UK's winter blues

LONDON – Weeks of arctic weather are not expected to endanger the British economy's anaemic recovery but the impact on productivity could push thousands of already recession-hit businesses over the edge.

The most severe cold snap in 30 years has caused widespread disruption to transport across Britain, with many people unable to get to work and thousands of schools closed.

The Forum of Private Business suggest the cost of employee absenteeism could reach as much as £450 million pounds ($717.8 million) a day if the cold snap continues until mid-January.

Canadian confidence

OTTAWA – Canadian businesses are regaining confidence in the economy and can obtain credit more easily, two surveys showed, but interest rates are likely to stay on hold for some time due to a benign inflation outlook.