Goldman Sachs economists lower their growth forecast for the third quarter in the United States

WASHINGTON, Aug. 19 (Reuters) – Goldman Sachs economists lowered their estimate for tracking U.S. economic growth in the third quarter to 5.5% from 9% due to the impact of the Delta variant, but raised their forecasts for the fourth quarter and beyond.

In a note released Wednesday, the investment bank said the Delta variant had a “slightly” larger effect on growth and inflation than expected due to its impact on consumer spending and production.

“Spending on meals, travel and some other services is expected to decline in August, although we expect the drop to be modest and brief,” the economists wrote, adding that the disruptions in the supply chain s ‘are also more prolonged.

They raised their fourth-quarter estimate to 6.5% from 5.5%, on the forecast that virus fears will subside, the service sector recovery picks up and stocks are being replenished.

Economists have also raised their forecasts for the first three quarters of 2022.

Reporting by Lindsay Dunsmuir; Editing by Anil D’Silva

Our Standards: Thomson Reuters Trust Principles.