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May 23, 2005 9:30 AM, EDT

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he U.S. economy will slow more this year than previously thought and inflation will rise, according to a survey of economists, Bloomberg reported Monday.

The National Association of Business Economics said they reduced their second-quarter growth forecast to 3% from an earlier 3.7% earlier prediction, Bloomberg said.

For the year the group predicted a 3.4% economic expansion, down from 3.6% earlier forecast for this year, and also down from last year’s 4.4% level, Bloomberg said.

The economy slowed to a 3.1% growth rate in the first quarter as the U.S. trade deficit rose and rising energy prices curtailed consumer spending, Bloomberg reported.

NABE's survey said rising imports will lead to growth slowing in the second quarter before rebounding to 3.5% in the second half of the year, Bloomberg said.