Atlanta Fed Lifts Q-3 GDP Prediction to 4.7%

Atlanta Fed Lifts Q-3 GDP Prediction to 4.7%

Atlanta Fed Lifts Q-3 GDP Prediction to 4.7%

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

  • The next GDPNow update is Wednesday, 5 September.

The US economy is growing at a 4.7% annualized rate in Q-3, the Atlanta Federal Reserve’s GDPNow forecast model showed on Tuesday, following the latest data on construction spending and factory activity.

This is now much faster than the 4.1% GDP growth pace calculated by the regional Fed’s forecast program on 30 August.

The Atlanta Fed program raised its estimates on consumer spending growth in Q-3 to 3.6% from 3.0% and private fixed investment growth in Q-3 to 4.3% from 3.0%.

Earlier Tuesday, the government said domestic construction spending edged up 0.1% in July, while the Institute for Supply Management said its barometer on factory activity climbed to 61.3 in August, the highest mark since May 2004.

And while US manufacturing activity accelerated to more than a 14-year high in August, boosted by a surge in new orders, there are some concerns over rising raw material costs as a result of import tariffs could restrain further growth.

The ISM described demand as remaining “robust,” but cautioned that “the nation’s employment resources and supply chains continue to struggle.”

According to the ISM, respondents to the survey were “again overwhelmingly concerned about tariff-related activity, including how reciprocal tariffs will impact company revenue and current manufacturing locations.”

Some economists warn that The Trump Tariffs could disrupt supply chains, undercut business investment and slow the economy’s momentum

The next GDPNow update is Wednesday, 5 September.

Tuesday, the US major stock market indexes finished at: DJIA -12.34 at 25952.48, NAS Comp -18.29 at 8091.27, S&P 500 -4.80 at 2896.46

Volume: Trade on the NYSE came in at 760-M/shrs exchanged

  • NAS Comp +17.2% YTD
  • Russell 2000 +12.9% YTD
  • S&P 500 +8.3% YTD
  • DJIA +5.0% YTD

HeffX-LTN’s Major US Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
4 September 2018 QQQ 185.02 Bullish (0.37) 182.64 185.93
4 September 2018 DIA 259.85 Bullish (0.44) 259.56 260.95
4 September 2018 SPY 289.65 Bullish (0.30) 288.06  None

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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