Atlanta Fed’s second-quarter GDP growth estimate rises to 2.7%, up from 2.5%

Just a few weeks ago, the Atlanta Fed was estimating GDP growth at nearly 1.5%. In its latest calculations, which have just been released, the expected growth rate has increased from 2.5% to 2.7%. Growth is moving from below trend to above trend in a short period of time.

In their own words:

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2024 is 2.7 percent July 17, up from 2.5 percent on July 16. Following the release of the U.S. Census Bureau’s housing starts report and the Federal Reserve Board of Governors’ industrial production report this morning, nowcasts for second-quarter real personal consumption expenditure growth and second-quarter real private gross domestic investment growth increased to 2.2 percent and 8.9 percent from 2.1 percent and 7.7 percent, respectively.

The next GDPNow update is Wednesday July 24.