The Atlanta Federal Reserve has raised its second-quarter growth estimate for the U.S. economy, driven by improved forecasts for consumption and investment following the latest employment and wholesale trade reports.
According to the updated GDPNow model, the seasonally adjusted annual real GDP growth for the second quarter is now projected at 2.0 percent, up from the previous estimate of 1.5 percent issued on July 3.
"Following the Bureau of Labor Statistics’ employment report last Friday and the U.S. Census Bureau’s wholesale trade report earlier today, the nowcasts for second-quarter real personal consumption expenditures growth and second-quarter real gross private domestic investment growth have increased to 1.5 percent and 7.6 percent, respectively, from previous forecasts of 1.1 percent and 6.5 percent," stated the Atlanta Fed.
The GDPNow model provides a real-time estimate of real GDP growth, based on current economic data for the relevant quarter.
The next update from the GDPNow model is scheduled for Tuesday, July 16.
