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Goldman Sachs trims U.S. growth forecasts on slower service sector recovery

Published 07/26/2021, 08:54 AM
Updated 07/26/2021, 08:56 AM
© Reuters. FILE PHOTO: People gather at the White Horse Tavern (est. 1880) as restrictions eased on indoor drinking in bars, allowing seating at the bar, during the outbreak of the coronavirus disease (COVID-19) in Manhattan, New York City, New York, U.S., May 3, 20

LONDON (Reuters) - Goldman Sachs (NYSE:GS) trimmed its U.S. economic growth forecast for remainder of the year on Monday, citing a slower recovery in the services sector.

The Wall Street bank revised both Q3 and Q4 growth 1 percentage point lower, to 8.5% and 5.0% respectively. That left the 2021 growth forecast at 6.6% on a full-year basis.

"We have long expected growth to peak in a mid-year boom fueled by vaccination and fiscal support," Jan Hatzius said on a note to clients. "But the subsequent deceleration now looks likely to be a bit sharper because the goods-to-services rotation is likely to be less seamless."

Latest comments

6.6% for 2021, -3.9% for 2020. average 1.35% over 2 years on a lower base. Booming economy???not sure about that.
they say "economy reaches 2019 level in 2022" and pretend to sound like it's a great achievement
Such a bunch of garbage! Just higher valuations leave to higher fees and bigger bonuses.
and vaccines doesnt work
Society adapted to the reduced service sector. It will take years to come back to previous levels.
muh gyna muh weegur
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