A lack of U.S. business appetite for risk is constraining a recovery in the world’s largest economy where sentiment is lagging, Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said.
The flow of mergers and acquisitions, while improved, hasn’t fully recovered since the global financial crisis and businesses are embarking mostly on low risk transactions, he told a business group Friday in Sydney.
The “U.S. feels like it is recovering,” Blankfein said. “Growth is established but it’s not great growth.”
The U.S. economy grew at an annualized 1.8 percent in the first quarter, less than originally estimated, as an increase in the U.S. payroll tax hurt consumer spending. Economists are predicting growth of 1.8 percent for the U.S. economy after a 2.2 percent expansion in 2012, according to data compiled by Bloomberg.
Deal transactions worldwide reached about $490 billion in the second quarter, up 3 percent from the previous three months. They were down about 10 percent compared with the same period in 2012, according to data compiled by Bloomberg.
Blankfein praised U.S. Federal Reserve Chairman Ben S. Bernanke’s courage and skill in responding to the financial crisis. He said while it was probable the so-called BRIC economies of Brazil, Russia, India and China would continue to expand, it wouldn’t be surprising if their growth was volatile.
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