Atlanta Fed Lifts GDP Outlook to 3% on Consumer Spending

Atlanta Fed Lifts GDP Outlook to 3% on Consumer Spending

$DIA, $SPY, $QQQ, $RUTX, $VXX

The US economy is expanding at a 3.0% annualized rate in Q-4 based on steady retail sales growth and stronger-than-forecast industrial output in November, the Atlanta Federal Reserve’s GDPNow forecast model showed Friday.

This is faster than the 2.4% pace for Q-4 GDP (gross domestic product) that the Atlanta Fed’s GDP program calculated a week ago. The next GDPNow update is Tuesday, 18 December.

Hours before the Atlanta Fed revision, the government said. US  consumer spending gathered momentum in November as households bought furniture, electronics and a range of other goods, which could further allay fears of a significant slowdown in the American economy even as the outlook overseas continued to darken.

The upbeat data from the Commerce Department Friday bolstered expectations that the Fed will raise interest rates for a 4th time this year at its 18-19 December policy meeting, despite moderating inflation and tighter financial market conditions.

It also stood in contrast to reports from China showing a dramatic fall-off in retail sales in the world’s second-largest economy and from Europe where a Key measure of business activity expanded at its slowest rate in four years.

Friday’s report shows Fed officials consumers just aren’t confident, they are also putting their money where the mouths are and buying enough goods to keep the economy humming.

Friday, the US major stock market indexes finished at: DDJIA -496.87 at 24100.51, NAS Comp -159.67 at 6910.66, S&P 500 -50.59 at 2599.95

Volume: Trade on the NYSE came in at 984-M/shares exchanged

  • NAS Comp +0.1% YTD
  • DJIA-2.5% YTD
  • S&P 500 -2.8% YTD
  • Russell 2000 -8.1% YTD

Have a terrific weekend.

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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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