Atlanta Fed Cuts US Q1 Growth Forecast to 2.6%

February 17, 2016 Share Print 0

The U.S. economy is on track to grow 2.6 percent in the first quarter after government data showed a decline in domestic home construction in January, the Atlanta Federal Reserve’s GDPNow forecast model showed on Wednesday.

That pace is a tad slower than the regional Fed’s prior estimate of 2.7 percent growth on Feb. 12, the Atlanta Fed said on its website.

The model’s forecast on first-quarter U.S. real residential investment growth fell to 13.6 percent from 16.5 percent.

Earlier Wednesday, the Commerce Department said housing starts slowed 3.8 percent to a seasonally adjusted annual pace of 1.099 million units in January.

via CNBC

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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.