Atlanta Fed GDPNow Q3 forecast lowered to 0.7% from 1.0%

Atlanta Fed cuts Q3 GDP on inventories

Q2 estimates around Wall Street have been hiked a few times since the initial 2.3% estimate and are floating somewhere around 2.9% at the moment. But that's largely due to growing inventories. That will reverse in Q2 and it's why the Atlanta Fed lowered its forecast.

"Since a week ago, the nowcast for the contribution of inventory investment to third-quarter real GDP growth has declined from -1.8 percentage points to -2.2 percentage points. This decline more than offset an increase in the nowcast of the third-quarter growth rate in real consumer spending from 2.9 percent to 3.1 percent after the release of this morning's retail sales report from the U.S. Census Bureau."

They are way below the consensus on Q3.