Tags: atlanta | fed | gdp | economy | third | quarter

Atlanta Fed Slashes GDP View to 2.1 Percent

Atlanta Fed Slashes GDP View to 2.1 Percent
Wisitporn-Cheyasak/Dreamstime

Thursday, 28 September 2017 10:58 AM

The U.S. economy is on track to grow at a 2.1 percent annualized pace in the third quarter based on the latest data on existing home sales and durable goods orders, the Atlanta Federal Reserve’s GDP Now forecast model showed.

The latest third-quarter gross domestic product estimate was slower than the 2.2 percent growth rate calculated on Sept. 19, the Atlanta Fed said.

Meanwhile, the U.S. economy grew a bit faster than previously estimated in the second quarter, recording its quickest pace in more than two years, but the momentum probably slowed in the third quarter as Hurricanes Harvey and Irma temporarily curbed activity.

Gross domestic product increased at a 3.1 percent annual rate in the April-June period, the Commerce Department said in its third estimate on Thursday. The upward revision from the 3.0 percent rate of growth reported last month reflected a slightly faster pace of inventory investment.

Growth last quarter was the quickest since the first quarter of 2015 and followed a 1.2 percent pace in the January-March period. Economists had expected that the second-quarter GDP growth rate would be unrevised at 3.0 percent.

Harvey, which struck Texas, has been blamed for much of the decline in retail sales, industrial production, homebuilding and home sales in August. Further weakness is anticipated in September after Irma slammed into Florida early this month.

Rebuilding is, however, expected to boost GDP growth in the fourth quarter and in early 2018. Estimates for the growth rate in the July-September period are just above 2.2 percent.

© 2018 Thomson/Reuters. All rights reserved.

   
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The U.S. economy is on track to grow at a 2.1 percent annualized pace in the third quarter based on the latest data on existing home sales and durable goods orders, the Atlanta Federal Reserve's GDP Now forecast model showed.The latest third-quarter gross domestic product...
atlanta, fed, gdp, economy, third, quarter
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2017-58-28
Thursday, 28 September 2017 10:58 AM
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