Economic recovery to accelerate in remainder of 2002

JUNE 13--The economic recovery in the United States will continue to gain momentum over the remainder of 2002, accompanied by modest economic growth and low inflation, according to a survey of economists and investment strategists at 41 leading international financial institutions and investment organizations recently conducted by professional services firm KPMG LLP (www.us.kpmg.com). The 2002 Survey of Economic and Capital Market Expectations, the 26th annual installment of the report, also revealed that the US stock market will be more in line with historical trends this year, producing single-digit returns.

"As the economy rebounds from last year's recession, gross domestic product and consumer price index figures point to further economic growth this year with low inflation and then accelerating growth with increasing inflation during the next decade," said Neil Wolfson, national partner in charge of KPMG's Investment Consulting Group, which conducted the survey.

The 2002 survey was conducted by mail between December 2001 and March 2002 and relied on the responses of 41 economic and investment strategists in the global investment community to provide their expectations for the economic and capital markets. The respondents to the survey are involved in developing economic forecasts or investment policies at leading financial institutions, investment management firms, investment banks, and universities and are responsible for managing more than $3 trillion in assets.