Tags: atlanta | fed | gdp | economy | growth

Atlanta Fed Lifts GDP Growth Estimate to 4.6 Percent

Atlanta Fed Lifts GDP Growth Estimate to 4.6 Percent

By    |   Friday, 24 August 2018 01:14 PM

The U.S. economy is growing at a 4.6 percent annualized rate in the third quarter following the government’s data on new-home sales and costs, the Atlanta Federal Reserve’s GDPNow forecast model showed Friday.

Friday’s Atlanta Fed estimate is higher than the last estimate of 4.3 percent on August 16.

The nowcast of third-quarter real residential investment growth increased from -4.5 percent to -1.1 percent.

After Friday morning’s advance durable manufacturing report from the Census Bureau, the nowcast of third-quarter real nonresidential equipment investment growth increased from 6.4 percent to 7.5 percent and the nowcast of the contribution of inventory investment to third-quarter real GDP growth increased from 1.92 percentage points to 2.03 percentage points.

Highlighting Friday's economic news, new orders for key U.S.-made capital goods increased more than expected in July and growth in shipments held firm, signs that business investment started the third quarter on a strong note.

The Commerce Department said on Friday orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 1.4 percent last month after an upwardly revised 0.9 percent increase in June. Business spending on equipment is being supported by the Trump administration's $1.5 trillion income tax cut package, which came into effect in January.

The government said Thursday that sales of new U.S. single-family homes unexpectedly fell in July to a nine-month low in a sign the housing market was cooling and could give less support to the overall economy.

The Commerce Department said new home sales decreased 1.7 percent to a seasonally adjusted annual rate of 627,000 units last month, the lowest level since October 2017. June's sales pace was revised up to 638,000 units from the previously reported 631,000 units. New home sales are drawn from permits and tend to be volatile on a month-to-month basis. They increased 12.8 percent from a year ago. Housing market data has weakened in recent months, with home resales declining in July for a fourth straight month.

The Atlanta Fed’s GDP estimate more than twice as high than the New York Federal Reserve’s calculation of 2 percent for third-quarter economic growth released last Friday.

The next GDPNow update is Thursday, August 30.

Material from Bloomberg and Reuters were used in this report.

© 2018 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
The U.S. economy is growing at a 4.6 percent annualized rate in the third quarter following the government’s releases on new-home sales and costs, the Atlanta Federal Reserve’s GDPNow forecast model showed Friday.
atlanta, fed, gdp, economy, growth
373
2018-14-24
Friday, 24 August 2018 01:14 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved