The Atlanta Fed’s real-time GDP tracker slashed its Q2 growth estimate after weak private investment and net export data.
The Atlanta Fed’s GDPNow model lowered its Q2 real GDP growth forecast to 1.2% from 2.5% on June 25. The revision follows recent data from the Census Bureau and Institute for Supply Management, which dragged down projections for private investment and net exports.
Private domestic investment growth is now estimated at 6.5%, down from 8.5%, while net exports’ contribution to GDP fell to -1.62 percentage points from -0.59. The next update is scheduled for July 7.
Earlier, NEC Director Hassett expressed optimism for a 4% H2 rebound, citing easing geopolitical tensions as a key driver.