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JPMorgan Cuts US Economic Growth Forecasts ‘Perilously Close’ to Recession

  • Bank sees second-quarter growth at 1%, down from 2.5% estimate
  • Atlanta Fed’s GDPNow tracker shows contraction in period
Bloomberg business news
Capital Markets Are 'Flashing Yellow': JPMorgan's Feroli
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JPMorgan Chase & Co. economists cut their US midyear economic growth forecasts after an influx of weaker data this week -- most notably a slowdown in consumer spending.

The Wall Street bank reduced its estimate for annualized gross domestic product growth to 1% for the second quarter, down from 2.5% previously. This quarter is also seen at 1%, down from 2%. Growth will tick up to 1.5% in the final three months of the year, helped by stronger car production and lower inflation, the bank’s economists said.