Atlanta Fed Lifts Q-2 GDP View to 4.1%
The latest estimate on gross domestic product growth was slower than the 3.7 percent pace estimated Friday, the Atlanta Fed said.
After Monday morning’s construction spending report from the US Census Bureau, the nowcast of Q-2 real government spending growth increased from 0.8 to 1.6%, while the nowcast of Q-2 real non-residential structures investment growth decreased from 7.6 to 5.3%.
The US Commerce Department said construction spending increased 0.4% in May. Data for April was revised down to show construction outlays rising 0.9% instead of the previously reported 1.8% rise.The government revised the construction spending data going back to January 2011 in the May report.
The nowcasts of second-quarter real consumer spending growth and second-quarter real nonresidential equipment investment growth increased from 2.7% and 4.0%, respectively, to 2.9% and 4.8%, respectively, after Monday morning’s Manufacturing ISM Report On Business from the Institute for Supply Management.
The Institute for Supply Management (ISM) said Monday its index of national factory activity jumped to a reading of 60.2 last month from 58.7 in May. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the US economy.
The model’s estimate of the dynamic factor for June—normalized to have mean 0 and standard deviation 1 and used to forecast the yet-to-be released monthly GDP source data—increased from 0.15 to 0.77 after the ISM report.
The next GDPNow update is Friday, 6 July.
Have a terrific 4th of July Freedom Week