Goldman Sachs said it expects the US economy to grow by 5.6% year on year this year.
The bank had expected the US economy to grow by 5.7%, and attributed its downgrade to the late recovery in consumer spending.
It also cut its forecast for US economic growth next year, from 4.4% to 4%.
Goldman Sachs
The report compensated for the decline by raising the expected growth rates for the next two years.
the bank also said that supply of semiconductors is expected to not improve until the second half of next year, and that the re-stocking will be delayed.
In the end, the bank said that the two main challenges to growth in the medium term are the slowdown in fiscal support and the need for spending on services to rebound quickly enough to offset a decline in purchases of goods.
Economic stumbles
In a related context, the United States escaped from a “historic bankruptcy” after the ruling Democratic Party managed to extract painstakingly approval to raise the debt ceiling.
Last Thursday, the US Senate approved legislation to temporarily increase the debt ceiling for the federal government in the world’s largest economic power.
The decision spared Washington the risk of a historic default later this month, but delayed a decision on a longer-term solution until early December.
Last September, economic analysts at the US investment bank Morgan Stanley expected the US economy to witness the worst economic slowdown.
Morgan Stanley analysts identified a period of economic slowdown, during the third quarter of this year, which will witness the bulk of the expected US economic slowdown for the second half of the year as a whole, against the background of the decline in stimulus spending measures and the continued disruption of supply chains.
The US trade deficit jumped to a record high in August on an increase in imports as companies rebuild inventories, the latest sign that economic growth slowed in the third quarter.
