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Friday, August 20, 2021

More signs of a summer swoon for economic growth

On Thursday morning, we noted that challenges were emerging for the health of the economic expansion, mostly due to the still-raging COVID-19 pandemic. 

Those signs continued into the end of this week. 

After highlighting that at least two Wall Street firms had either cut or cautioned on their economic growth forecasts, the team at Goldman Sachs followed this week with a reduction in its third quarter gross domestic product (GDP) outlook. 

Goldman’s economics team led by Jan Hatzius said in a note to clients third quarter growth should come in at an annualized rate of 5.5%, well below the 9% the firm was previously forecasting. 

The team at Oxford Economics also published its latest weekly recovery tracker, which…

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