Morgan Stanley raises 23-year US economic growth to 1.3%

July 21 (Reuters) – Morgan Stanley raised its forecast for US economic growth this year on the back of a strong manufacturing sector and increased public investment in infrastructure. The investment bank expects a soft landing for the economy.

The real gross domestic product of the United States in 2023, according to Morgan Stanley, will increase by 1.3%, while previously forecast an increase of 0.6%.

“The new data points to a more comfortable soft landing than we expected, thanks in large part to government investment in infrastructure and investment in non-residential construction,” Morgan Stanley economist Ellen Zentner said in a Thursday note.

According to the bank’s forecasts, investments in non-residential construction will increase by 12.9% in the fourth quarter, while state and local government investments will increase by 4%.

The original message in English is available under the code: (Roshan Abraham and Susan Matthew in Bangalore, translated by Tomasz Kanik)