Economists slash growth forecastsJuly 11, 2012: 12:46 PM ET
Ouch! The outlook for the economy just got worse.
Goldman Sachs, Barclays, Macroeconomic Advisers, Deutsche Bank, J.P. Morgan and High Frequency Economics all downgraded their forecasts for U.S. economic growth Wednesday.
All six firms now believe the recovery slowed in the second quarter. That's terrible news, considering the United States was already growing at a snail's pace, with the economy expanding at an annual rate of only 1.9% in the first quarter.
The downgrades came after reports showed exports to foreign countries and business inventories contributed less than expected to the economy in the second quarter.
Both business inventories and exports are key components of Gross Domestic Product, the broadest measure of economic growth.
The estimates for second quarter growth now range from 1.2% at Macroeconomic Advisers to 1.7% at J.P. Morgan.
We won't have the actual GDP figures confirmed until the end of the month. The next GDP report is due out from the Commerce Department on July 27th.