Atlanta Fed GDPNow estimate for Q1 comes in at 3.4%

Up sharply from the last estimate

The Atlanta Fed GDPNow estimate spiked higher to 3.4% from 2.3% January 30th estimate).

In their words:

The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2017 is 3.4 percent on February 1, up from 2.3 percent on January 30. After this morning's ISM Report On Business from the Institute for Supply Management and the construction spending release from the U.S. Census Bureau, the forecasts for first-quarter real personal consumption expenditures growth and real private fixed investment growth increased from 3.0 percent to 3.8 percent and 4.7 percent to 8.0 percent, respectively.

The next GDPNow update is Tuesday, February 7.

It is early in the quarter. So the model can be more volatile. Also, remember, in the 4th quarter the GDP model did not do so well. They estimated that GDP in the 4Q would come in at 2.9%. It was reported at 1.9% on Friday. Economists had estimated 2.2%