The odds of a recession in the next year have fallen to just 20%, Goldman Sachs says

• Goldman Sachs said the odds of a recession in the next 12 months have fallen to 20% from 25% earlier.
• It cited encouraging economic data, such as consumer sentiment and slowing inflation.
• The bank expects only one remaining interest rate hike in the Federal Reserve’s tightening cycle.

Goldman Sachs is more bullish on a soft landing for the US economy, citing encouraging inflation data.

In a note on Monday, the bank’s chief economist, Jan Hatzius, put the odds of a recession in the next 12 months at 20%, down from an earlier estimate of 25%.