Lehman Bros cut growth forecast

Lehman Brothers, the fourth-biggest US securities firm by capital, cut its forecasts for US economic growth, inflation and interest rates after consumer spending and job growth slowed in June and July and oil prices rose to a record.

Lehman reduced its forecast for US gross domestic product growth in 2005 to 3.3% from 3.7%. For this year, the firm cut its growth forecast to 4.3% from 4.4%.