S&P cuts US growth from 3% to 2%

Thursday, 17 October 2013

S&P begins the roll oout of growth downgrades for the US cutting the annualized U.S. growth view closer to 2% from 3%, Bloomberg is reporting.

The ratings agency recognises the Senate deal will be approved but says that the shutdown has taken $24 billion out of the economy and cut 0.6% off of yearly fourth quarter GDP growth.

Taper gawn.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.