Following two economic reports this week, the Atlanta Fed GDPNow Model forecast rose 0.1 percentage points to 2.7%.
Latest forecast: 2.7 percent — June 29, 2016
The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2016 is 2.7 percent on June 29, up from 2.6 percent on June 24. The forecast for second-quarter real consumer spending growth increased from 4.1 percent to 4.3 percent after this morning’s personal income and outlays release from the U.S. Bureau of Economic Analysis. This was partly offset by a decline in the forecast of the second-quarter change in net exports in 2009 dollars from $14 billion to $11 billion after Monday’s advance report on international trade in goods from the U.S. Census Bureau.
Neither GDPNow nor the New York Fed Nowcast estimates take into consideration pending home sales, but both take into consideration reported final sales of existing homes.
For discussion, please see Pending Home Sales Sink 3.7%, Last Month Revised Way Lower, GDP Will Follow.
Mike “Mish” Shedlock