WASHINGTON (AFX) - The economics team at Goldman Sachs said they raised their first quarter US GDP forecast to a 2.0 pct rise from a 1.0 pct contraction, due to improving orders and slowing inventory cuts. "The decision ... was driven by a string of indicators suggesting that domestic goods production was stabilising and apt to turn up sooner than expected," Goldman Sachs economists said in a research note. Among the main reports causing the more positive outlook is the ISM (formerly NAPM) report for December, which was led by a strong upturn in new orders. While the December index of 48.2 stayed below the expansion/contraction point of 50, the surge in new orders suggested this key manufacturing sector measure could show an overall expansion "fairly soon," Goldman Sachs said. Hours worked in December, which were stable, and a small rise in factory hours worked in the non-farm payroll report, was also a factor. Continuing support in the construction industry further boosted the forecast. As a result, Goldman Sachs see 2002 GDP growth at 1.0 pct, up from 0.3 pct previously, on an annual average basis. On a fourth quarter-on-fourth quarter basis, which economists say gives a better picture of the relative annual performance of the economy, the US should see GDP rise 2.4 pct this year, up from 1.6