Goldman Sachs cuts U.S. growth forecast as commodity prices bite

SINGAPORE – Goldman Sachs analysts downgraded their forecasts for U.S. economic growth for this year, reckoning that spikes in oil and other commodities since Russia’s invasion of Ukraine will hurt spending.

The investment bank cut its annualised growth forecast to 2.9% against a previous expectation of 3.1%. It expects fourth-quarter real gross domestic product growth of 1.75% against a previous forecast of 2%.

Goldman analysts, led by Jan Hatzius, said there are additional downside risks if shortages of key metals constrain U.S. production, and put the chance of a recession during the next year at 20%-35%.

(Reporting by Tom Westbrook; Editing by Tom Hogue)