Economics
JPMorgan Economists Warn of U.S. Contraction Early Next Year
- Virus surge, new restrictions seen as limiting activity
- Vaccine should help drive recovery after first quarter
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JPMorgan Chase & Co. analysts are forecasting a U.S. economic contraction next quarter as various states impose restrictions on businesses and activity amid a record surge in Covid-19 cases.
The world’s largest economy is expected to shrink at a 1% annualized pace in the January-to-March period, JPMorgan said in its 2021 U.S. outlook issued Friday. That would follow estimated growth of 2.8% in the fourth quarter and the reported 33.1% expansion in the third quarter, which came after a record contraction in the prior period.