Goldman Sachs: Re-acceleration of Covid makes GS cut outlook for service consumption growth in July/August. They downgrade Q3 GDP forecast from +33% (quarter-on-quarter annualized) to 25%.

“The sharp increase in confirmed coronavirus infections in the US has raised fears that the recovery might soon stall. Although a significant part of the increase reflects higher testing volumes—which together with younger patients and better treatments will likely keep measured fatality rates much lower than in the March/April wave—a broader look at the CDC criteria for reopening shows that not only new cases but also positive test rates, the share of doctor visits for covid-like symptoms, and hospital capacity utilization have deteriorated meaningfully in the last few weeks. Moreover, these pressures have already persuaded many states and cities to put reopening on hold or actually roll it back”