Economists at Goldman Sachs lowered their forecasts for US growth this year and next, citing a delayed recovery in consumer spending, according to the latest report released Sunday.
Economists expected a 5.6 percent expansion in gross domestic product this year, down from the 5.7 percent estimated earlier, according to Bloomberg.
The report also expected GDP growth of 4% in 2022, compared to the previous estimate of 4.3%, and according to the report: “After updating our estimates of the main growth drivers driving the reopening of consumption expectations, fiscal stimulus, savings and wealth effects, and incorporating the long-term impact of the Corona virus on Spending on virus-sensitive consumer services, we now expect to further delay the recovery in consumer spending.”
The new estimates come just days after the Labor Department released data showing that US employers added 194,000 jobs last month, well below economists' expectations.
The unemployment rate fell sharply, to 4.8%, but was overshadowed by job growth, which slowed for the second month in a row after an increase in coronavirus cases during the summer, according to The Hill.
Weak job growth is proving to be a challenge for President Joe Biden and Democrats in Congress as they try to sell their economic agenda to voters with the midterm elections just a year away.
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