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Goldman Sachs slashes US economic growth forecast over weaker spending on services


Goldman Sachs slashes US economic growth forecast over weaker spending on services
By
Anneken Tappe, CNN Business
Published Jul 27, 2021 11:49:17 AM
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(CNN) Goldman Sachs slashed its forecast for US economic activity in the second half of the year, pointing to sluggish consumer spending on services as well as the threats posed by the Covid-19 Delta variant.
During the pandemic and the start of the recovery, Americans spent big on goods: Used car prices soared, as did prices for furniture and other household items, in response to surging demand and shortages of materials.
But in normal times, consumers spend much more on services like concerts or dining out and the big spending on goods that has defined the pandemic recovery so far isn t sustainable to keep the US economy growing. ....

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