Reuters
Published 16.08.2023 20:12
By Noel Randewich
Aug 16 (Reuters) – The US economy could grow at an annualized rate of 5.8% in the third quarter, the Atlanta Federal Reserve’s GDPNow forecasting model showed on Wednesday, following the release of home construction data. and industrial production.
This pace is higher than the 5.0% estimated by the Atlanta Federal Reserve’s GDPNow model on Tuesday.
The Fed’s regional bank GDPNow model typically diverges from reality early in each quarter, and analysts say they expect the estimate to drop as more data becomes available.
But it is a sign that the economy, far from slipping into recession, is facing 5.25 percentage points of rate hikes from the Federal Reserve since March 2022.
Construction of single-family homes in the United States soared in July and permits for future construction increased amid an acute shortage of existing homes.
Other data showed factory output rebounded 0.5% in July, after declining 0.5% in the previous month.
The latest signs of recovery for the US economy come as the market waits for the Fed to conclude its aggressive rate hike campaign.
(Reporting by Noel Randewich; Additional reporting by Ann Saphir. Editing in Spanish by Javier Leira)
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Written by: Reuters
2023-08-16 18:12:00
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