Goldman Sachs cuts US Q3 and Q4 GDP forecasts

Sees slower service sector recovery

Economists at Goldman Sachs now see 8.5% GDP growth in Q3, down from 9.5%. They also see Q4 at 5.0% from 6.0% previously.

They see a slower service sector recovery. On Friday, the Markit services PMI was at a six-month low. That miss was more about supply chain bottlenecks than the pandemic.

This new forecast lands in an risk averse market with S&P 500 futures down 6 points.

We get the first look at Q2 GDP this week.