The Atlanta Fed Lifts Q-3 GDP Growth View to 5%
The US economy is growing at a 5.0% annualized rate in Q-3 following the latest data on construction spending and manufacturing activity, the Atlanta Federal Reserve’s most-recent GDPNow forecast model showed.
That is faster than the 4.7% pace calculated by the regional Fed’s forecast program Tuesday.
The Atlanta Fed’s program increased its projection on consumer spending growth in the current Quarter to 3.4% from 3.1 %, and its estimate on private fixed investment growth to 5.8% from 5.2%.
Earlier Wednesday, the US Commerce Department said construction spending fell 1.1% in June, which was the biggest decliner since April 2017, but the reading for May was adjusted higher to show a 1.3% increase from an earlier 0.4% gainer.
The Institute for Supply Management said its gauge on national factory activity slipped to 58.1 in July from 60.2 in June. A reading above 50 signals expansion in the manufacturing sector.