Atlanta Fed Lowers Q2 GDP Growth Estimate To 3%

(RTTNews) - The Atlanta Fed slightly cut its second quarter economic growth estimate on Thursday, citing a downgrade to the investment component following the release of housing starts data earlier in the day.

The GDPNow model estimate for seasonally adjusted annual real GDP growth in the second quarter was reduced to 3.0 percent from 3.1 percent predicted on June 17 and June 7.

"After this morning's housing starts report from the US Census Bureau, the nowcast of second-quarter real gross private domestic investment growth decreased from 8.8 percent to 8.3 percent," the Atlanta Fed said.

GDPNow is a running estimate of real GDP growth based on available economic data for the current measured quarter.

U.S. housing starts tumbled to a near four-year low in May, mainly due to a steep drop in residential construction.

The Commerce Department said housing starts plunged by 5.5 percent to an annual rate of 1.277 million in May after surging by 4.1 percent to a revised rate of 1.352 million in April.

The next GDPNow update is due on Thursday, June 27.

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