Atlanta Fed Revised Lower U.S. GDP Forecast in Q1

The American economy is on course to expand by 1.9 percent annualized rate in the first quarter, which is weaker than the initial prospect. At the same time, the Atlanta Federal Reserve GDPNow model published on Wednesday the data on consumer prices and domestic retail sales for February.

The Atlanta Fed had lowered down its forecast on the growth of personal consumption spending in Q1 of the present year, indicating an adjustment to 1.4 percent from 2.2 percent. The updated forecast for the gross domestic product came in lower than the predicted growth of 2.5 percent on March 9, according to the regional Fed.

The initial estimate of the Atlanta Fed for the first quarter GDP was 4.2 percent on January 29 and resumed to decline amid soft readings in home sales, industrial production, and trade balance. Moreover, the Commerce Department stated yesterday that retail sales had a downturn for three months in a row in February. On Tuesday, the Labor Department revealed that consumer prices rose to 0.2 percent in the past month following the decline in gasoline prices and moderation in the cost living.