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WASHINGTON (AP) -- A new survey finds that forecasters have lowered their expectations about the pace of the economic recovery.

The economy is still expected to grow, but the National Association for Business Economics survey being released Monday finds that economists have become more cautious in the third quarter. Fifty-four percent expect growth of more than 2 percent in 2010, down from 67 percent in a similar survey last quarter.

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.

Fewer firms expect a drop in employment through attrition or layoffs. The majority of those surveyed said employment would hold at current levels.

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