• 18 hours Did North Korean Hackers Just Steal $13M From Global ATMs?
  • 19 hours Asian Tech Stocks Rebound After A Tough Week
  • 20 hours Switzerland Bans New Audi, Mercedes, Porsche Imports
  • 21 hours Sealing Off The North Korea Smuggling Loophole
  • 23 hours This Tech Giant Is Pushing For Blockchain Adoption
  • 1 day Venezuela’s Gold Reserves Are Reaching Critical Levels
  • 2 days Brexit Woes Weigh On The British Pound
  • 2 days Forget Turkey, This Is The Biggest Threat To European Finance
  • 2 days There’s No Hiding From Google
  • 2 days Turkish Lira Bounces Back After Qatar Bailout Pledge
  • 2 days What Happens If Tesla Goes Private?
  • 2 days China's Most Powerful Weapon In The Trade War
  • 2 days Can The S&P 500 Shake Off Negative Sentiment?
  • 3 days Standards Go Out The Window As Employers Struggle To Fill Jobs
  • 3 days The Two Trillion Dollar Markets Amazon Hasn’t Conquered
  • 3 days Digital Supermodels Outperform Humans
  • 3 days France Could Lose Billions In EU Trade Route Redirection
  • 3 days Beer Giants Are Striking Out With Millennials
  • 3 days What Is Bakkt And Can It Take Bitcoin Mainstream?
  • 3 days Tesla’s Board Delivers A Stern Message To Elon Musk
  1. Home
  2. Markets
  3. Other

GDPNow Holds Steady at 0.3% as Low Inflation Adds to GDP, Housing Subtracts

The Atlanta Fed GDPNow Forecast remained at +0.3% following recent economic reports.

Today's grim housing report subtracted a bit from GDP, but the CPI which only rose 0.1% for the month added to GDP.

The net effect of the two cancelled out.

Latest forecast: 0.3 percent -- April 19, 2016

The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2016 is 0.3 percent on April 19, unchanged from April 13. After last Thursday's Consumer Price Index release from the U.S. Bureau of Labor Statistics, the forecast for first-quarter real consumer spending growth ticked up from 1.8 percent to 1.9 percent. After this morning's report on new residential construction from the U.S. Census Bureau and the Department of Housing and Urban Development, the forecast for real residential investment growth declined from 9.0 percent to 8.5 percent.


GDPNow History

GDPNow

Kudos to the Atlanta Fed for highlighting intermediate effects of economic reports on their charts.

It appears the CPI added roughly 0.1% to GDP while housing subtracted roughly 0.1% from GDP.


Housing Starts and Permits Plunge

For discussion of today's housing report, please see Housing Starts Plunge 8.8%, Permits Plunge 7.7%; Bloomberg Cites "Fundamental Strength"


What's in Your Basket?

Do you think prices are only up 0.9% on the year?

For my take, please see Diving Into the CPI: What's in Your Basket?

 

Back to homepage

Leave a comment

Leave a comment