Today’s disappointing U.S. retail sales report is sending shockwaves across Wall Street’s economics departments.
“The disappointing 0.4% m/m rise in US retail sales values in June increases the chances that GDP grew at an annualised rate of less than 1% in the second quarter,” said Capital Economics’ Paul Dales.
Barclays just cut its Q2 GDP growth tracking estimate to 0.5% from 0.6%, reports CNBC’s Bob Pisani.
According to Zero Hedge, Goldman Sachs cut its GDP forecast to 1.0% from 1.3%.
“Today’s number complicates Q2 GDP estimates,” tweeted BTIG’s Dan Greenhaus. “Q2 should be less than 1.0%, the second time in 3 qtrs GDP is less than 1.0%. That’s not very good.”
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