Atlanta Fed's pulls down GDP growth view to 1.7%

Tuesday, 03. September 2019 20:26

According to the so-called nowcast of the staff of the Federal Reserve's subsidiary in Atlanta, the estimate of real growth in gross domestic product in the United States fell to the series low on Tuesday. The annualized estimate for the three months through September, derived from the GDPNow model, was cut by 0.3 percentage points on a rounded basis to 1.7%.

The change from August 30 was attributed to statistical data on manufacturing published for August by the Institute for Supply Management and the Census Bureau's report on construction spending for July. The informal expansion rate print went to as high as 2.3%.

Contributions by personal consumption expenditures and the equipment component were slashed by 0.07 percentage points each to 2.02 and a negative 0.1, respectively. The item measuring government expenditure retreated by six points to 0.23. The readings for residential investments and nonresidential structures landed five points down at 0.01 and minus 0.23, respectively. Smaller declines were registered for net exports and private inventories.

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