GDP estimate for 4Q growth rises to 2.9%
The rise is being attributed to the construction spending and manufacturing ISM report from this morning.
As per the Atlanta Fed:
"The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2016 is 2.9 percent on December 1, up from 2.4 percent on November 30. After this morning's construction spending report from the U.S. Census Bureau, the forecasts of fourth-quarter real residential investment growth and real government spending growth increased from 7.1 percent to 12.4 percent and 0.1 to 0.6 percent, respectively. The forecast of real nonresidential structures investment growth fell from 1.4 percent to -3.4 percent after the same report. The forecasts of real consumer spending growth and real nonresidential equipment investment growth increased from 2.2 percent to 2.5 percent and 4.6 to 6.6 percent, respectively, after this morning's Manufacturing ISM Report on Business from the Institute of Supply Management and the incorporation of earlier released November data in the model's estimate of its dynamic economic activity factor. The factor is used to forecast yet-to-be released monthly source data for GDP."
The next GDPNow update is Tuesday, December 6.
