Economists at JPMorgan Chase & Co. cut their forecasts for mid-year US economic growth after reporting weaker data this week, mainly a slowdown in consumer spending, Bloomberg reported.
In particular, the bank cut its estimate for annual GDP growth to 1% for the second quarter, from 2.5% previously. The current quarter is also forecast at 1%, up from 2%. Growth will pick up to 1.5 percent in the final quarter of the year, helped by stronger auto production and lower inflation, the bank’s economists said.
“Our forecast comes dangerously close to a recession,” Michael Feroli, JPMorgan’s chief U.S. economist, said on Friday. “However, we continue to expect the economy to expand, in part because we believe employers may be reluctant to lay off workers, even in a period of low product demand.”
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
