Atlanta Fed’s GDPNow growth estimate for second quarter rebounds to 2.6% from 1.8% previously

Earlier this week, the Atlanta Fed’s GDPNow growth estimate for the second quarter fell sharply to 1.8% from 2.7% previously. Today, this decline has been almost entirely erased with a rebound reaching 2.6%.

In their own words:

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2024 is 2.6 percent on June 6, compared to 1.8% on June 3. Following recent releases from the US Census Bureau, the Institute for Supply Management and the US Bureau of Economic Analysis, immediate forecasts of real growth in personal consumption expenditures in the second quarter and second quarter growth in domestic investment real gross private sector rose from 1.8 percent and 4.6 percent, respectively, to 2.4 percent and 5.8 percent, while the nowcast of the contribution of the change in real net exports to the Real GDP growth in the second quarter fell from -0.54 percentage points to -0.50 percentage points.

The next GDPNow update is Friday June 7.

Cancel slow growing dogs (for now).

US yields are slightly higher:

• two-year yield 4.734%, +0.3 basis point
• 5-year yield 4.311%, +0.5 basis point
• 10-year yield 4.300%, +4.2 basis points
• 30-year yield 4.453%, +1.3 basis points