Barclays cuts U.S. first quarter GDP growth view to 2.5 percent

 Barclays cuts U.S. first quarter GDP growth view to 2.5 percent

NEW YORK (Reuters) - Barclays economists said on Wednesday they reduced their outlook on U.S. economic growth in the first quarter to an annualised 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)

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Updated Date: Jan 24, 2019 00:06:22 IST