Atlanta Fed boosts US growth view to 2.1% for Q2

Friday, 14. June 2019 17:33

After the Census Bureau in Washington revealed a solid, 0.5% increase in retail sales for May on top of a strong upward revision for the previous month, the Federal Reserve Bank of Atlanta upgraded its unofficial tracker of real growth in gross domestic product of the United States. It set the rate at 2.1% for the second quarter on Friday on a rounded basis or 0.7 percentage points above the June 7 update according to the nowcast model. The prints were almost the same without car sales. Analysts also calculated the 0.4% rise in industrial production, registered by the Federal Reserve, in the so-called GDPNow.

Today's data mostly boosted the projection for personal consumption expenditures, which are used in inflation measures. The component's contribution gained 0.48 to hit 2.61 percentage points. The change in private inventories item reduced its negative impact by 0.11 points to 1.02. The equipment subindicator moved 0.02 points up against a 0.03 slippage in nonresidential structures. Earlier in the past week, residential investment, government spending and inventories all showed small improvements.

In the current series, started on April 29, the headline went to as low as 0.9% and the current reading is the highest.

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