The Most Important Number of the Week Is 6.2%
Lowered forecasts for U.S. growth and wavering consumer sentiment could actually work in the economy and markets’ favor.
Seemingly bad economic numbers and slowing activity may work out just fine for markets.
Photographer: Xinhua News Agency/Xinhua News AgencyIt’s all downhill from here? For the first time this year, Wall Street analysts have started cutting their forecasts for U.S. growth in 2021. They now expect the economy to expand 6.2%, according to a monthly survey by Bloomberg News, down from a 6.6% estimate in July.
Let’s get this out of the way right now: First, no one should be disappointed if the latest estimates prove true, as it would still represent the best year for the economy since 1983. Second, the latest outlook is still way above the 4.1% pace of growth that was projected at the start of the year.