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Goldman Sachs downgrades outlook on US economy

A patch bearing the Goldman Sachs Group logo is pictured on a trading jacket on the floor of the New York Stock Exchange in New York.
Daniel Acker | Bloomberg | Getty Images

Goldman Sachs's economists on Wednesday downgraded their outlook on the U.S. economy in the second half of 2014 following disappointing data on and business inventory in August.

They said in a research note they reduced their tracking estimate on U.S. gross domestic product (GDP) in the third quarter to an annualized rate of 3.2 percent from an earlier view of 3.5 percent.

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They also cut their estimate on GDP in the fourth quarter by a quarter point to 3.0 percent.

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