U.S. GDP Estimates And EPS Sensitivity For 2014

A report by Goldman Sachs Group Inc (NYSE:GS) last week takes a look at the various estimates for U.S. GDP during 2014 and beyond and presents a study of EPS sensitivity to GDP growth. GDP growth estimates On an annual average basis, the midpoint of the Federal Reserve central tendency of GDP growth for 2014 is 2.8%. It is 3.2% in 2015 and 3.0% in 2016. Goldman Sachs forecasts average annual growth of 2.9% in 2014, up from the 1.8% calculated by annualizing 1H 2013, due basically to the passing of the impact of the 2013 payroll tax increase and…