Atlanta Fed: ‘The Trump Economy’ on Track to Grow 5.4% in Q-1
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The US economy is setting a torrid pace in Q-1 of Y 2018, putting it on track to mark its best Quarter since late Y 2009, a forecast model from the Atlanta Federal Reserve showed Thursday.
GDP (gross domestic product), the government’s broadest economic gauge, is on track to grow at a 5.4% annualized rate in Q-1, the Atlanta Fed’s Nowcast model showed, shortly after the release of US manufacturing and construction spending data.
The last time GDP reached that lofty level was in Q-4 of Y 2009, when it recorded a 5.6% increase as the economy was digging its way out of it great recession and the Y 2008 financial crisis.
The latest GDP estimate was higher than the 4.2% growth pace the Atlanta Fed calculated Monday and the 3.2% growth the government reported for Q-4 of Y 2017.
Earlier Thursday, the Institute for Supply Management (ISM) said its index on national factory activity slipped less than expected to 59.1 in January from 59.3 in December.
Separately, the US Commerce Department said construction spending rose 0.8 percent to a record high of $1.25-T in December.
The Atlanta Fed’s early GDP estimates, however, tend to behigher than the official government readings and are subject to downward revisions from incoming data.
Still, the latest forecast reinforced the view that US businesses and consumers are in good shape, which would allow the Fed to further raise interest rates in Y 2018.
Thursday, the major US stock market indexes finished at: DJIA +37.32 at 26186.71, NAS Comp -25.62 at 7385.86, S&P 500 -1.83 at 2821.98
Volume: Trade on the NYSE came in at: 914-M/shares exchanged
- NAS Comp: +7.0% YTD
- DJIA: +5.9% YTD
- S&P 500: +5.6% YTD
- Russell 2000: +2.9% YTD
The HeffX-LTN analysis of the major market indexes are Bullish to Very Bullish.