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GDPNow falls on weak consumer spending report

 | News Today

GDPNow falls on weak consumer spending report

| Business Top stories | Usa news

The Atlanta Fed’s GDPNow estimate of fourth-quarter economic growth plunged from 6.9% Monday to 5% Friday after the release of worse-than-expected economic data from the Commerce Department and the Federal Reserve.

The decline was driven by a sharp drop in the model’s estimate of personal consumption expenditure. At the start of the week, these were estimated to have risen at a rate of 3.14%. On Friday, it was reduced to 1.4%.

GDPNow uses economic modeling to read what the latest economic data imply about economic growth. It is not a forecasting model but a real-time evaluation. The next update is scheduled for Wednesday, January 19.

The Commerce Department said retail sales fell 1.9% in December, much worse than expected and a disappointing second month. Adjusted for inflation, sales probably fell in November as well. The Federal Reserve said industrial production also fell in December, with manufacturing output falling 0.3%.

GDPNow falls on weak consumer spending report

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