The Collapse Is Getting Even Worse: Goldman Slashes Q4 GDP Forecast To Just 1%, US Households Breached Their Debt Ceiling, Citigroup To Cut 11.000 Jobs As ADP JOBS REPORT FALLS TO 118K, And Britain’s Biggest Retailer Is Ready To Abandon Its US Expansion
December 5th, 2012
Goldman Slashes Q4 GDP Forecast To Just 1%
The latest data has prompted Goldman to cut its Q4 GDP forecast. It now sees just 1% growth.
The key points from Goldman’s Kris Dawsey:
We expect that the positive boost to GDP growth from inventory investment seen last quarter will not persist into Q4.
Weaker inventory series in the monthly business sentiment surveys point to slowing inventory accumulation, and our quarterly models suggest some payback from Q3’s inventory build.
Farm inventories will likely decline again in Q4 due to continued effects from the Midwest drought earlier this year.
As a result of our analysis, we have cut our tracking estimate of Q4 real GDP growth from 1.3% to 1.0%.
US households already went off their fiscal cliff and breached their debt ceiling
US quickly approaching another debt ceiling limit aligning with the fiscal cliff