Atlanta Fed cuts projection for US growth to 1.7%

Monday, 28. October 2019 18:50

The staff of the subsidiary of the central bank of the United States in Atlanta said on Monday that the GDPNow model implies the rate of increase in the real gross domestic product of 1.7% for the third quarter. The unofficial estimate, which includes the effect of inflation, was reduced by 0.1 percentage points from the update four days before.

The change was mostly attributed to the figures released on foreign trade and wholesale inventories for September, which brought a decline in deficit by $2.7 billion month on month to $70.4 billion. The so-called nowcast tool showed an impact on private investment growth.

The contribution of the change in private inventories dipped 0.16 percentage points to 0.14 points under zero. The equipment item slipped 0.07 points to a negative 0.18. The decrease was partly offset by the improvement of 0.15 points to minus 0.26 in net exports. The headline was initiated at 2% on July 30. It has peaked at 2.3% in rounded terms and went to as low as 1.5%.

The first official statistics for the three months through September are due to be released on October 30.

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