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JPMorgan Raises Q4 US GDP Growth Forecast from 4.5% to 5.7%

January 15, 2010 12:30 PM EST
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JPMorgan's (NYSE: JPM) Chief Economist Bruce Kasman raised the bank's Q4 forecast for US GDP growth from 4.5% to 5.7% today. Kasman cited a quicker-than-expected turn in the inventory cycle, "underlying momentum in final sales, jobless claims and financial market conditions..." Further, Kasman said that consumer spending is also climbing at a much stronger-than-expected rate.

Initial GDP data for Q4 will be released on Friday, January 29 at 8:30am ET. Economists are currently looking for growth of 4.1%. GDP in the US rose 2.2% during Q3 of '09.

Notably, JPMorgan said it expects the US economy to grow at about 3% during Q1.

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