THE US economy should continue to grow this year, though forecasters have lowered their expectations about the pace of recovery, according to a new survey.

The National Association for Business Economics survey found that economists have become more cautious in the third quarter, with 54 percent expecting growth of more than 2 percent in 2010, down from 67 percent in a similar survey last quarter. Still, those in the survey saw improvement in a number of areas.

"The US recovery from the Great Recession continues, with business conditions improving," said William Strauss, an economist and adviser at the Federal Reserve Bank of Chicago, who helped conduct analysis for the report.

Demand and profit margins continued to grow in the quarter.

The survey showed better margins for the services, goods-producing, finance, insurance and real estate businesses. Margins stagnated in the transportation, utilities, information and communications industries.

The employment outlook also seemed to be improving. The portion of firms expecting a drop in employment through attrition or layoffs fell in the quarter. But most weren't expecting to add lots of workers, either. The majority of those surveyed said employment would hold at current levels.