Q3 GDP Forecasts: Downgraded to Around 4%

GDP forecasts have been downgraded sharply for Q3 due to COVID.  

The surge in COVID cases has impacted some consumer spending, caused further supply chain disruptions, and possibly some downgrades due to policy (expiration of unemployment benefits during a COVID wave).

Here is a table of some downgrades over the last 40 days.

	Merrill	Goldman	GDPNow
7/30/21	7.0%	9.0%	6.1%
8/20/21	4.5%	5.5%	6.1%
9/10/21	4.5%	3.5%	3.7%

From BofA Merrill Lynch:

We continue to track 4.5% qoq saar for 3Q GDP. [Sept 10 estimate]
emphasis added

From Goldman Sachs:

We now expect GDP growth of 3.5% in Q3. [Sept 9 estimate]

And from the Altanta Fed: GDPNow

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2021 is 3.7 percent on September 10 [Sept 10 estimate]