CNBC/Moody’s Survey Shows Economists Slashed US Growth Forecast in Q2

Economists slashed forecasts for second quarter growth by as much as a half percent, after new data showed weaker exports and slower-than-expected investment in inventories.

Second quarter tracking GDP fell to 3 percent, a decline of 0.4 percent, according to the CNBC/Moody’s Analytics Rapid Update. The update had shown second quarter growth as high as 3.6 percent.

There had been hope for a big bounce back in the second quarter to make up for extremely sluggish first quarter growth of 0.7 percent, which had been blamed on temporary factors like weather. Three percent is still a healthy growth rate, but there has been a series of disappointing economic reports lately.

Economists have revised first tracking quarter GDP to 0.8 percent, down from a higher expectation of 0.9 percent before Thursday’s data, according to the Rapid Update survey. The second look at first quarter GDP will be released by the government Friday morning.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza