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

Goldman Sachs trims U.S. growth forecasts on slower service sector recovery
Goldman Sachs trims U.S. growth forecasts on slower service sector recovery   -   Copyright  Thomson Reuters 2021
By Reuters

LONDON – Goldman Sachs 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.”