The Atlanta Fed has trimmed its growth rate projections following the latest data on inventories, trade and consumer spending this week. The have listed on their website an annualized 2.4% growth rate for the U.S economy in the third quarter. This percentage is 0.4% lower than estimated on September 28th. The Atlanta Fed continued and said that the consumer growth fell from 3.0 percent to 2.7 percent, in the wake of Friday’s personal income and spending data for August.
In terms of inventory investment, third-quarter growth fell from 0.60 percentage point to 0.26 percentage point, while its forecast of the contribution from net exports increased from -0.13 percentage point to 0.13 percentage point.
Using their GDP Now model, the Federal Reserve Bank of Atlanta cut forecasts for third quarter GDP in the U.S on Friday after the release of the weak personal spending data for August.
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