Atlanta Fed Backs Off Q-3 GDP Growth Forecast

Atlanta Fed Backs Off Q-3 GDP Growth Forecast

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.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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