The latest GDPNow model update lowers second-quarter U.S. growth estimates following weaker consumption and investment data.
The Atlanta Fed’s GDPNow model revised its estimate for second-quarter U.S. GDP growth to 3.8 percent, down from 4.3 percent on May 21. The adjustment follows declines in nowcasts for real personal consumption expenditures and gross private domestic investment growth.
Earlier projections for consumption and investment growth stood at 2.9 percent and 11.4 percent, respectively. Those figures were lowered to 2.6 percent and 10.4 percent after new data releases from the Census Bureau and Bureau of Economic Analysis.
The next GDPNow update is scheduled for June 1, with no immediate market reaction reported in the latest release.