Profile image
By Ludwig Von Mises Institute (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

“Surprisingly Strong Economy”: Atlanta GDP Forecast Dives

Friday, March 3, 2017 21:07
% of readers think this story is Fact. Add your two cents.

(Before It's News)

By: C.Jay Engel
GDP graph

Well that was fast. Yesterday we observed the silliness of Fed president Kaplan’s idea that it was consumers that were going to push GDP up over 2%. Today, we learn the following (source):

Turning to spending and income, personal consumption expenditures could muster only a 0.2 percent gain, 1 tenth below the Econoday consensus in a marginal gain that belies the enormous strength underway in consumer confidence. And when adjusted for inflation, spending fell 0.3 percent for the largest drop since September 2009.

There goes the consumer-led GDP hopes. In response, the Atlanta Fed’s GDPNow model dipped hard: from a 2.5% forecast to a 1.8%.

Just yesterday, the Fed was referring to a “surprisingly strong economy” which was used as support for interest rate hikes “sooner than later.” So much for that. Further against the strong economy theme is the fact that, while GDP forecasts for first quarter 2017 were above 3% due to construction data forecasts, today’s construction numbers actually fell 1%! 

Let’s summarize: the GDP rate was supposed to grow due to consumer spending, which came in much lower than expected. Meanwhile, the GDP forecasts had been higher in the first place due to construction forecasts, which today came in much lower as well.

But we’re all supposed to scratch our heads and fathom what would we do without the Fed at the helm?

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.