FILE PHOTO – The logo of Barclays is seen on the top of one of its branch in Madrid, Spain, March 22, 2016. REUTERS/Sergio Perez/File Photo
NEW YORK (Reuters) – Barclays economists said on Wednesday they reduced their outlook on U.S. economic growth in the first quarter to an annualized rate of 2.5 percent from an earlier projection of 3.0 percent as a result of the historically long federal government shutdown.
“This estimate primarily reflects a decline in real compensation of non-essential employees as a result of reduced hours worked and the assumption that some lost public sector output can be made up later within the same quarter following a resolution to the impasse,” they wrote in a research note.
Reporting by Richard Leong; Editing by Chizu Nomiyama
Source : Reuters
