The U.S. economy is on track to grow 0.9 percent in the third quarter after a bigger-than-expected widening of the trade gap for goods in August, the Atlanta Federal Reserve’s GDPNow forecast model showed on Thursday.
This was a much slower rate from the regional Fed bank’s prior estimate of 1.8 percent on Monday, the Atlanta Fed said on its website.
The advance August trade reading, which showed a deficit of $67.187 billion which was the largest since March, led the regional Fed’s program to estimate a drag of 0.9 percentage point on U.S. growth, which was 0.7 point bigger than the previous estimate on Monday.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.