Goldman Sachs on 3 developments that will slow US growth to a crawl in Q4 2023, just 1.3%
<p>Goldman Sachs with a very subdued outlook for US economic growth into the end of the year, this in summary:</p><p>Three developments are set to temporarily slow growth:</p><ol><li>resumption of student loan payments</li><li>the federal government looks more likely than not to temporarily shut down</li><li>UAW strike</li></ol><p>Taken together, we expect quarterly annualized GDP growth to slow from +3.1% in Q3 to +1.3% in Q4 (vs. consensus of +2.9% and +0.6%)</p><p>We expect the slowdown to be shallow and short-lived, with GDP growth rebounding to +1.9% in Q1 (vs. consensus of +0.1%) as these temporary drags abate and income growth reaccelerates on the back of continued solid job growth and rising real wages.</p><p>JPM Asset Management looking for worse:</p><ul><li><a href="https://www.forexlive.com/centralbank/jp-morgan-analyst-says-fed-willing-to-sacrifice-economy-to-kill-inflation-like-the-ecb-20230912/" target="_blank" rel="follow" data-article-link="true">JP Morgan analyst says Fed willing to sacrifice economy to kill inflation, "like the ECB"</a></li></ul>
This article was written by Eamonn Sheridan at www.forexlive.com.
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