A lagging recovery in consumer spending has led economists at Goldman Sachs Group Inc. to cut their economic growth forecasts for the U.S. for 2021 and 2022, according to reports Sunday.
In a note Sunday, a Goldman
team led by Jan Hatzius forecast 2021 growth of 5.6%, down from a previous outlook of 5.7%, and 4% growth in 2022, down from prior expectations of 4.4%, Reuters and Bloomberg News reported.
The researchers reportedly cited “a longer-lasting virus drag on virus-sensitive consumer services spending” and expectations that the global supply of semiconductors will not improve until next year, along with a likely decrease in fiscal stimulus.
They also expect some spending on services and non-durable goods to remain below pre-pandemic levels into next year, especially if the shift to remote work reduces overall spending.