April 10 (Reuters) - The U.S. economy is at risk of
shrinking in the second quarter, BofA Global Research wrote in a
client note, following recent economic data that hinted that the
Federal Reserve's aggressive interest rate hikes were cooling
the economy.
"This week's data flow is consistent with our view that the
U.S. economy slowed steadily over the course of 1Q 2023," BofA
economists wrote in a note dated Friday and emailed Monday. "As
a result, the hand-off to 2Q looks weak. We see meaningful risks
of a contraction in GDP in 2Q."
BofA pointed to data from April 3 showing U.S. manufacturing
activity slumped in March to the lowest level in nearly three
years as new orders plunged.
(Reporting by Reuters markets team; Editing by Mark Porter)
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