Goldman Sachs is becoming increasingly pessimistic about the US economy as coronavirus support from the government phases out and consumer spending remains on an uncertain path.
Over the weekend, the Wall Street bank downgraded its forecast for America’s economic growth, which is closely monitored by the investment community. It’s the second time Goldman Sachs has revised its 2021 forecast lower in two months.
Two main factors drove this outlook.
One is that Covid-19 relief programs are set to wind down "significantly" through the end of the year, eliminating a source of income for some households.
The other concern is that consumers are not doling out enough money on services to compensate for a drop in spending on goods.
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