The Atlanta Federal Reserve’s GDPNow model has slightly downgraded its projection for U.S. economic growth in the second quarter of 2026, with the estimated annualized rate easing to 3.5% from a previous 3.7%. The updated nowcast, released on 1 May 2026, signals that while momentum remains solid, the pace of expansion may be cooling modestly.
The adjustment from 3.7% to 3.5% suggests that incoming data for the second quarter have been marginally weaker than earlier anticipated, though still consistent with above-trend growth for the United States. As the GDPNow model incorporates new economic releases, markets will be watching subsequent updates for further signs on the durability of U.S. activity through the remainder of the quarter.
