zerohedge.com / by Tyler Durden / Sep 30, 2016 10:55 AM
Just over a month ago, The Atlanta Fed surprised economic watchers when in early August it unveiled that its Q3 GDP tracker was predicting that the US economy would grow at a blistering annualized pace of 3.6% (and as high as 3.80%) a rather dramatic rebound from the “deplorable” 0.8% and 1.4% growth rates in Q1 and Q2, respectively.
Many expressed surprise at the underlying assumptions that would send US economic growth soaring in the second half: after all, it was a near record surge in consumer spending that boosted first half GDP – and kept it positive – as all other components, most notably Capex, tumbled into a non-consumer recession. Alas, the spending surge that boosted first half growth has now fizzled, as today’s disappointing personal spending data confirmed, so it stood to reason that these overoptimistic estimates for GDP growth would ultimately be revised substantially lower.
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