US Growth Outlook Dims Slightly Amid Supply Constraints

• Fitch Solutions has revised down their real GDP growth forecast for the US in 2021 from 6.2% to 6.0%, which now puts them slightly below consensus estimates of 6.1%. 
• They believe that supply-side constraints impacting output and rising COVID-19 infection rates weighing on consumer sentiment will cap growth rates in the second half of the year. 
• That being said, real GDP growth will remain strong by historic standards, underpinned by fiscal and monetary policy as well as strong momentum from the re-opening of the economy as vaccination rates continue to rise. Moreover, Fitch forecasts another year of above-trend growth at 3.7% in 2022.

(Source: Fitch Solutions)