RT.com
02 Jul 2022, 14:49 GMT+10
JPMorgan Chase slashes its growth forecast for the US as consumers curb their spending
JPMorgan Chase has revised its midyear US growth outlook, sharply lowering expectations for second-quarter annualized real GDP growth to 1% from 2.5%, Bloomberg reported on Friday.
The largest US bank also cut its projection for the third quarter to 1% from 2%. However, growth is expected to tick up to 1.5% in the final three months of the year, boosted by robust car production and lower inflation, JPMorgan analysts said.
The downgrade comes amid a tightening of monetary policy, as the US Federal Reserve responds to inflation with aggressive interest rate hikes. The Fed raised the key interest rate by 0.75 of a percentage point in June.
The gloomy forecast followed an influx of weaker data earlier this week that showed that US consumer spending rose less than expected in May, as motor vehicles remained scarce. Meanwhile, higher prices forced cutbacks on purchases of other goods.
READ MORE: US stocks off to worst start in over 50 years
"Our forecast comes perilously close to a recession," Michael Feroli, JPMorgan's chief US economist, said in a note seen by the agency.
"However, we continue to look for the economy to expand, in part because we think employers may be reluctant to shed workers, even in a period of soft product demand."
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Kolkata Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Kolkata Sun.
More InformationMOSCOW, Russia: This week, Russia became the first country to officially recognize the Taliban as the government of Afghanistan since...
CAIRO, Egypt: This week, both Hamas and Israel shared their views ahead of expected peace talks about a new U.S.-backed ceasefire plan....
WASHINGTON, D.C.: The Trump administration has made public a visa decision that would usually be kept private. It did this to send...
MADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
Birmingham [UK], July 7 (ANI): Indian pacer Akash Deep mesmerised one and all with a ten-wicket haul in a critic-silencing, era-defining...
Rio de Janeiro [Brazil], July 7 (ANI): External Affairs Minister S Jaishankar and his Russian counterpart, Sergey Lavrov, held a meeting...
Birmingham [UK], July 7 (ANI): Following his side's win over England, Indian pacer Akash Deep revealed that he played the match because...
Rio de Janeiro [Brazil], July 7 (ANI): Condemning the April 22 terrorist attack in Jammu and Kashmir's Pahalgam in the 'strongest terms,'...