Moody’s Analytics Chief Economist Flags Weaker Growth and AI Stock Concerns
Mark Zandi, Moody’s Analytics chief economist, and Jim Paulsen said U.S. growth has fallen below consensus forecasts, signaling a weaker-than-expected economy. They also warned AI-related investment concerns are weighing on equities and noted recent inflation readings are cooling more slowly, sustaining risk aversion.
1. Economic Growth Below Forecasts
Mark Zandi and Jim Paulsen highlighted that indicators of U.S. GDP and business activity have lagged consensus forecasts in recent months, suggesting economic momentum is faltering faster than models projected.
2. AI-Related Investment Concerns
They noted that mounting concerns over the pace and impact of AI innovation have prompted institutional and retail investors to temper exposure to technology stocks, exerting downward pressure on broader equity benchmarks.
3. Inflation Cooling Slower Than Expected
Discussion emphasized that core inflation metrics remain elevated and are decelerating more gradually than anticipated, raising questions about the timeline for monetary easing and influencing risk assessments.
4. Impact on Moody's Analytics
A weaker growth outlook combined with persistent inflation and AI-driven market volatility could drive greater demand for Moody's Analytics’ economic modeling, forecasting tools, and risk management services.