The U.S. economy is expected to grow at an annualized rate of 5.8% in the third quarter, according to the Atlanta Federal Reserve’s GDPNow forecasting model on Wednesday, following the release of data on housing starts and the industrial production.
This pace is faster than the 5.0% estimated by the Atlanta Fed’s GDPNow model on Tuesday.
The regional Fed’s GDPNow model typically diverges from reality at the start of a given quarter, and analysts say they expect the estimate to drop as the data comes in.
But it is a signal that the economy, far from falling into recession, faces 5.25 percentage points in rate hikes from the US Federal Reserve since March 2022.
Construction of single-family homes in the United States increased in July and building permits rose amid an acute shortage of existing homes.
Other data showed factory output rose 0.5% in July after falling 0.5% in June.
Separately, Deutsche Bank raised its estimate of third-quarter real gross domestic product, which takes inflation into account, from 1.5% to 3.1%.
The latest indications of a resilient US economy come as traders widely expect the Fed to have completed its aggressive interest rate hike campaign.
2023-08-16 17:50:06
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