Atlanta Fed Downgrades US GDP Q3 to 2.9%

The U.S. economy is on track to grow at a 2.9 percent annualized rate in the third quarter, the Atlanta Federal Reserve’s GDP Now forecast model showed on Tuesday following the latest data on consumer prices and housing starts.

The latest third-quarter GDP estimate was lower than the 3.0 percent figure calculated on Sept. 15, the Atlanta Fed said on its website.

The forecast of third-quarter real residential investment growth remained at -6.3 percent following the August housing starts data released earlier on Tuesday.

U.S. housing starts slowed 5.8 percent to a seasonally adjusted annual pace of 1.14 million units in August, the Commerce Department said.

In the meantime, the projected third-quarter real consumer spending growth edged down to 3.0 percent from 3.1 percent after last Friday’s release of the August Consumer Price Index.

The Labor Department said the CPI rose 0.2 percent last month after being unchanged in July.

via Reuters

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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