Market Insider

Economists chop growth outlook after consumers shop less than expected

People walk along the sidewalk in the rain in New York.
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Economists shaved their growth forecasts for the fourth quarter after November's softer retail sales report, but that doesn't mean the economy is slowing meaningfully or the consumer is stressed.

Between the miss in retail sales and softer industrial production, JPMorgan chopped its forecast to 1.5 percent GDP growth from 2 percent for the fourth quarter, a disappointment after the third quarter's 3.2 percent pace.

Goldman Sachs Chief Economist Jan Hatzius said he lowered tracking fourth-quarter GDP to 2 percent from 2.1 percent, and Barclays lowered the tracking pace to 1.8 percent after weaker retail sales and industrial production.