The Atlanta Federal Reserve's GDPNow model predicts a 2.2% growth rate for the United States' second-quarter GDP. This forecast is based on a nowcasting model that synthesizes various economic data to estimate GDP growth. The GDPNow model is updated throughout the quarter as new data becomes available, providing a timely estimate of economic activity.
To break it down ¹:
- *GDPNow Model*: A forecasting tool used by the Atlanta Fed to estimate GDP growth by aggregating 13 subcomponents that make up GDP.
- *Growth Rate*: The predicted 2.2% growth rate is an annualized rate, seasonally adjusted.
- *Economic Implications*: A growth rate of 2.2% suggests moderate economic expansion, driven by factors such as consumer spending, business investment, and government spending.
It's worth noting that economic forecasts can be subject to revision based on new data and changing economic conditions. The GDPNow model is designed to incorporate the most recent data, providing a current estimate of economic activity .