Atlanta Fed Backs Off Q-3 GDP Growth Forecast
The US economy is on track to grow at a 2.9% annualized rate in Q-3, the Atlanta Federal Reserve’s GDP Now forecast model showed on Tuesday following the latest data on consumer prices and housing starts.
The latest Q-3 GDP estimate was lower than the 3.0% figure calculated on 15 September, the Atlanta Fed said on its website.
The forecast of Q-3 real residential investment growth remained at -6.3% following the August housing starts data released earlier on Tuesday.
US housing starts slowed 5.8% to a seasonally adjusted annual pace of 1.14-M units in August, the Commerce Department said.
In the meantime, the projected Q-3 real consumer spending growth edged down to 3.0 from 3.1% after last Friday’s release of the August Consumer Price Index.
The US Labor Department said the CPI rose 0.2% last month after being unchanged in July.
Atlanta Fed’s GDP forecast has fallen steadily on weaker-than-expected data since its initial forecast of Q-3 US growth at 3.6 percent on 3 August.