WASHINGTON (AP) - Seeing Friday's disappointing jobs report, many economists have downgraded their forecasts for U.S. growth this year.
BNP Paribas economist Julia Coronado says she now expects growth of 2.2 percent this year, down from her previous forecast of 2.4 percent. She also revised down her estimate of growth in the April-June quarter to a 2.2 percent annual rate, from a 2.5 percent rate.
After the jobs report Friday, JPMorgan Chase sharply reduced its growth forecast for the July-September quarter to a 2 percent annual rate, down from 3 percent. It cited the weaker U.S. hiring and a likely drop in U.S. exports related to slower growth overseas.
And JPMorgan Chase now forecasts growth of 2.1 percent for 2012, down from 2.3 percent.
Forecasting firm Macroeconomic Advisers and Swiss bank UBS have also marked down their expectations since Friday's jobs report.
As a general rule, it takes about 2.5 percent growth to generate enough hiring to keep up with population growth. The reduced forecasts suggest that hiring may not strengthen much this year.
First Coast News