Atlanta Fed GDPNow slashed to 2.3% from 3.2%

I flagged that there was going to be a drop in this tracker due to soft inventory and trade data today and now we get the numbers as it’s cut to 2.3% from 3.2%.

The Atlanta Fed said:

“After this morning’s Advance Economic Indicators release from the US
Census Bureau, the nowcast of fourth-quarter real gross private domestic
investment growth decreased from 0.1 percent to -0.9 percent, while the
nowcast of the contribution of net exports to fourth-quarter real GDP
growth fell from 0.10 percentage points to -0.61 percentage points.”

The consensus for tomorrow’s report is 2.6% but there are downside risks to that now, which are downside risks to the US dollar. Given these skews, I would peg GDP at 2.2% tomorrow.

This article was written by Adam Button at www.forexlive.com.