Goldman Sachs Adjusts Estimates for US Economic Growth and Inflation

Friday, 16 February 2024, 15:37
Goldman Sachs's economics team has revised their projections, expecting a decrease in Q1 US GDP growth to 2.3% and an increase in February's PCE inflation to +0.43%. This adjustment comes after strong housing starts and PPI data. The firm's accurate forecast of CPI has drawn extra attention. The article provides detailed insights on the impact of the latest economic indicators on various sectors, highlighting key areas of concern and positive outlooks.

Goldman Sachs Economic Projections

The economics team at Goldman Sachs has revised their estimates on Q1 US GDP growth and PCE inflation based on the latest data. The adjustments were made following housing starts and PPI data releases.

Insights on Economic Indicators

The producer price index (PPI) exceeded expectations, with core producer prices rising significantly. The analysis includes detailed information on PPI, CPI, and import prices, influencing Goldman Sachs's projections.

  • Core PCE price index rose 0.43% in January
  • Year-over-year rate of +2.85%
  • Headline PCE price index increased 0.36% in January

Bottom Line: The changes in PPI and CPI data have led to a revised outlook on economic growth and inflation, impacting various sectors such as housing and financial services.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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