The International Monetary Fund has updated its World Economic Outlook and is now forecasting the world economy to grow 3.5 percent in 2012 and 3.9 percent in 2013.
The latest growth forecast for 2013 is 0.2 percentage point lower than the forecast in April. The forecast for 2012 was little changed, with the IMF noting that first quarter growth had been better than expected but the second quarter is looking worse.
Indeed, a Commerce Department report on Monday showed that US retail sales fell 0.5 percent in June. It was the third consecutive monthly decline.
Real Time Economics reports that following the retail sales report, economists have revised estimates of US second quarter growth down to near stall speed.