Goldman Sachs lowers first quarter US GDP estimate

Goldman Sachs has lowered its first quarter US GDP estimate to 1.9% from 2.3%.  Economists at the firm also see Q4 2013 GDP revised down to 2.4% compared to 3.2% reported on January 30. Both come after the disappointing US retail sales data today.

From Goldman:

The January retail sales report was a significant disappointment, compounded by negative back revisions. Adverse weather was likely a substantial contributor to the weaker January figures. Separately, jobless claims were roughly in line with expectations.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

One Comment

  1. All the notions that the US consumer was to go on a massive debt fueled consumption spending spree once again leading to an inflationary spiral, proving out false.
    The Euro has been strong as a result of, since we are not supposed to say deflationary forces I will say disinflationary forces.
    Economic releases suggest those same forces are at play in the US in spite of the claimed QE effects.
    Euro is not doing much of anything on the weak US retail. Would have expected at least a good spike to 1.3700 and above which today is not happening.

    Economic planets getting realigned perhaps.

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