US Economy Seen Shrinking in Next Two Quarters, Survey Shows
- Forecasters see GDP declining in the second and third quarters
- Year-ahead recession odds stand at 65%, Bloomberg survey shows
Pedestrians walk along Wall Street near the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Forecasters now expect US economic activity to contract over consecutive quarters in the middle of this year as steep interest-rate hikes from the Federal Reserve cascade more broadly across the economy.
Gross domestic product is seen falling at a 0.6% annualized rate in the second quarter and 0.3% in the third as consumer spending stagnates, business investment wanes and industrial production weakens, according to a Bloomberg survey of 73 economists conducted Jan. 13-18.