NEW YORK: Goldman Sachs Group Inc economists revised down its forecast for growth in the United States economy this year, pointing to a “harder path” ahead for the American consumer than previously anticipated.

       Overall expansion in 2021 is now seen at 5.7%, economist Ronnie Walker wrote in a report to clients.

       That compared with an expectation of 6% published at the end of August. Walker said the weaker growth will follow through into more of a pick-up in 2022. Goldman raised its forecast for that year to 4.6%, up from 4.5% previously.

       Explaining the downgrade for 2021, Walker wrote that American consumers were likely to spend less amid the Delta variant’s emergence, fading fiscal support and a switch from demand for goods to services. He added that supply-chain disruptions had hit inventory restocking too.

       “The hurdle for strong consumption growth going forward appears much higher: the Delta variant is already weighing on third-quarter growth, and fading fiscal stimulus and a slower service- sector recovery will both be headwinds in the medium term,” said Walker. The bank also lifted its projection for the unemployment rate to 4.2% at end of 2021 from a prior estimate of 4.1%. ― Bloomberg