Goldman Sachs has downgraded its U.S. growth outlook for 2020, saying a reimposition of Covid-19 restrictions due to surging cases across swaths of the country will weigh on consumer spending.

That’s according to the bank’s chief economist, Jan Hatzius, in a note to clients sent out over the July Fourth weekend, which saw the U.S. record nearly 156,000 new coronavirus cases. “The healthy rebound in consumer services spending seen since mid-April now appears likely to stall in July and August as authorities impose further restrictions to contain virus spread,” the economist and his team said.

“Over the last few weeks, the Covid situation in the U.S. has worsened significantly to the point where the U.S. is now a notable outlier among advanced economies,” he said, adding that states representing over half the U.S. population now meet one or none of the CDC-recommended gating criteria for reopening.

Source:  MarketWatch