Connect With PPD
Follow Us:
Economy

Strong Economic Data Boosts 3Q GDP Forecast to Strong 3.7%

Workers assemble built-in appliances at the Whirlpool manufacturing plant in Cleveland, Tennessee August 21, 2013. (Photo: Reuters)

The Atlanta Federal Reserve has revised its GDPNow Forecast amid strong economic data to 3.7% for the third quarter (3Q), up from 3.5% on August 9. The forecast for personal consumption expenditures increased from 1.91% to 1.97% after the U.S. Census Bureau report on U.S. retail sales.

U.S. retail sales not only bounced back in July, increasing by 0.6 and doubling the median economic forecast calling for 0.3, but there were also sizable upward revisions to the prior months. June retail sales were revised 0.5% higher, moving the overall to 0.3% from an initial reported -0.2%. In May, it moved to unchanged juxtaposed to the -0.1% initial reading.

While most readings of consumer spending were gaining steam, retail sales were weak until now. Consumer spending is now positive and in line with full employment. The previous months’ revisions will have a significant impact on final estimates for second-quarter (2Q) GDP, while July, as the GDPNow Forecast shows, will have a positive impact on 3Q GDP.

The Commerce Department initially estimated the U.S. economy grew at a healthy 2.6% annualized pace in the 2Q 2017, matching the GDP forecast. The rate of growth was more than double the 1.2% GDP rate posted in the first quarter.

The  Census Bureau also said Tuesday business inventories for manufacturing and trade were $1,869.3 billion, up 0.5% (±0.1%) from May 2017. That also topped the median economic forecast and the higher-than-expected headline is likely to further boost 2Q GDP.

Manufacturers’ and trade inventories, adjusted for seasonal variations but not for price changes, are 2.8% (±0.2%) higher than levels in June 2016.

READ FULL STORY

SubscribeSign In
Richard D. Baris

Rich, the People's Pundit, is the Data Journalism Editor at PPD and Director of the PPD Election Projection Model. He is also the Director of Big Data Poll, and author of "Our Virtuous Republic: The Forgotten Clause in the American Social Contract."

Share
Published by
Richard D. Baris

Recent Posts

Media’s Worst Russian Collusion Sins May Soon Be Repeated

The most damning journalistic sin committed by the media during the era of Russia collusion…

1 year ago

Study: Mask-Mandates and Use Not Associated With Lower Covid-19 Case Growth

The first ecological study finds mask mandates were not effective at slowing the spread of…

3 years ago

Barnes and Baris on Big Tech’s Arbitrary Social Media Bans

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…

3 years ago

Barnes and Baris on Why America First Stands With Israel

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…

3 years ago

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…

4 years ago

Study: Infection, Vaccination Protects Against Covid-19 Variants

Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…

4 years ago

This website uses cookies.