OECD cuts global forecast

The OECD today cut its global growth forecast including lower growth for both U.S. and China. U.S. now forecast to grow real GDP at 2.6% in 2014, down from 2.9%; while China is now forecast to grow 7.4%, down from previous estimate of 8.2%.

What’s the point? This news may have partially contributed to today’s market weakness. Over the years, the OECD has been more of a trend follower and late on their forecast changes regarding the economy. We think the U.S. economy could probably exceed 2.6% growth, particularly in 2H-14. We do have some concern about slower growth in China and the OECD report provides some credence to that concern. Link: http://money.msn.com/business-news/article.aspx?feed=AP&date=20140506&id=17588989