That's the findings of a new survey released Monday by the National Association of Business Economics.
The 46 economists polled tempered their expectations after seeing weak economic data in recent months. The panel reduced its forecast for annual economic growth to 2.6 percent in 2010 and 2011. That's down from its forecast of 3.2 percent in May.
The economists expect the economy will add jobs through the end of 2011, but not enough to bring the unemployment rate below 9.2 percent. They don't see home prices rising much or the nation's soaring deficit falling much.
The mainly downbeat report comes as persistently high unemployment, weak consumer spending and stagnant wages drag on the U.S. economy. The nation emerged last summer from the deepest recession since the 1930s, but the economic recovery has not yet led to widespread job gains or growth.
"This summer's slowdown has exposed the economy's sensitivity to wealth losses, the unwinding of debt, and the reductions in economic stimulus," association President-elect Richard Wobbekind said in a statement.
THE NABE'S OUTLOOK survey is conducted four times a year. It compiles economists' big-picture expectations for factors such as growth, hiring, home prices and spending. The economists work for industry groups, government agencies, banks and economic-analysis firms.
The economy grew at a 1.7 percent annual rate in the second quarter, according to the government's latest estimate. That's down from a 3.7 percent growth rate in the January-March quarter. Most economists expect growth to be similarly weak in the July-September quarter, with estimates between 1.5 percent and 2 percent.
Consumer spending accounts for about 70 percent of economic activity. Economists told the association that consumer spending is likely to remain low over the next year, with families spurning retailers during the holiday shopping season.
THE HOUSING MARKET also will struggle, the economists said. Home prices will not rise enough in 2011 to keep up with inflation, and housing starts will remain near record lows, they said.
Still, they expressed few concerns about inflation, deflation or so-called stagflation -- a dangerous mix of rising prices and slow economic growth.
The economists expected hiring to increase slowly. They predicted the economy will add 150,000 or fewer jobs each month until the middle of 2011, after which the numbers will improve to about 175,000. Only then will the jobless rate begin dropping, from 9.6 percent to 9.2 percent, they said.
The economy needs to add 125,000 net new jobs each month to keep up with population growth.
The biggest concern among the economists was the federal deficit. They predicted it will shrink by only about $100 billion to $1.2 trillion -- a level the association called "extreme."