JPMorgan now says US economy shrank 1.6% in Q1
JPMorgan has cut its US first quarter GDP estimate to -1.6% from -1.1% after figures released from the US Census Bureau showed healthcare revenue was lower than expected. That would mean the first quarter was the slowest since Q1 2009 and steer the Fed’s 2.9% 2014 growth forecast further off target.
The consensus is for a 3.5% rebound in Q2 but that would still put growth in the first half at a pace of just 0.95%.
The S&P 500 is at the lows of the day, down 10 points but I suspect it’s more on fears about Congress than the economy.