The New York Federal Reserve downgraded its forecast on the US economic growth in the fourth quarter of 2016. It slashed the outlook by 0.7% to 1.8%. It also lowered its growth forecast for the first quarter of 2017 to 1.7%.
The bank’s statement reads that the downgrade was due to the weaker of capacity utilization and industrial production data, as well as the labor market data.
In the third quarter of 2016, the US GDP grew at a 3.2% annual rate. That marked the fastest pace of growth over the last two years.
The New York Federal Reserve provides its forecasts based on a wide range of the latest macroeconomic data and by estimating potential consequences for the US economy.
