Goldman slashes US GDP forecast on weak income and spending data
Goldman Sachs has cut its third quarter US GDP forecast from 1.7 per cent to 1.5 per cent after the release of weak data.
US personal incomes grew by just 0.1 in July, economists had expected an increase of 0.2 per cent, matching last month's increase.
Spending grew at the same 0.1 per cent rate, below analyst estimates of 0.3 per cent growth. That's slightly down from last month's 0.5 per cent uptick.
PCE deflator in line at 1.4% … core as tenth softer at 1.2 … perhaps slightly yield -ve at the margins
— Steve Collins (@TradeDesk_Steve) August 30, 2013
Hardly encouraging data from the US there, dollar slightly off as a result
— World First (@World_First) August 30, 2013
US Jul data weak, but I can see where this is going. Fed will say data did continue to improve to end-June, but July & Aug mean wait & see
— Mike van Dulken (@Accendo_Mike) August 30, 2013