July 12 (Bloomberg) -- The U.S. economy appears poised to resume expansion in the second half of this year with “subdued” growth, Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said in a commentary in the Atlanta Journal-Constitution.

“I see the economy beginning to recover in the second half of this year,” Lockhart said in the printed commentary. “However, I expect growth to be relatively subdued for some time after it turns positive.”

Lockhart said he believes the recession is continuing, though “the pace of decline has slowed.” There are “some signs of stabilization” in housing, manufacturing, employment and consumer spending, he said.

Employers in the U.S. cut 467,000 jobs in June, more than anticipated by economists, pushing the unemployment rate to the highest in almost 26 years, the Labor Department reported July 2. The jobless rate of 9.5 percent has already met Fed policy makers’ projection in April that unemployment would peak at between 9.2 and 9.6 percent in the fourth quarter.

To contact the reporter on this story: Steve Matthews in South Bend, Indiana at smatthews@bloomberg.net

Last Updated: July 12, 2009 12:00 EDT