Atlanta Fed holds GDP growth projection at 2.1%

Tuesday, 02. April 2019 17:49

The Federal Reserve Bank of Atlanta said on Tuesday that its unofficial estimate of the annualized economic growth in the United States was insignificantly trimmed, leaving the headline rate for the first quarter at 2.1% on a rounded basis. Analysts from the central bank's subsidiary priced in the advance figures for durable goods released earlier in the day and said the so-called nowcast of nonresidential equipment investment growth pointed to an increase of 4% compared to 3.7% from yesterday's update.

The headline for the GDPNow tool had contribution from the equipment component, with an increase to 0.24 from 0.22 percentage points. The gain was more than offset by the impact from the change in private inventories. The figure weakened to 0.21 from 0.27 percentage points, which was its record in the series. The item went to as low as a negative 0.65 points.

The calculation was launched on March 1, when growth in gross domestic product was seen at 0.3%. It touched bottom at 0.2% soon after that and 2.1% is the highest mark, topping the blue chip consensus, the average of the top ten and bottom ten forecasts.

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