Threadneedle's Weldon cuts US GDP forecast

Threadneedle's Cormac Weldon has cut his GDP forecast for the US this year as soaring fuel costs threaten to cripple consumers.

The head of US equities and manager of Threadneedle's American Smaller Companies fund, has cut his forecast for GDP to 2.7%, from 3% because of the impact of rising fuel costs. He said higher prices would hit demand, especially from lower income earners and consumers in general, impacting on the country's economic growth. The national average cost of a gallon of gasoline is $3.97, up 48% since 6 September last year, according to Bloomberg. "It is not a significant cost for corporates as energy prices are a modest cost for the average company, so it is not too much of a concern for ...