https://trendingpolitics.com/atlanta-fed-the-us-economy-is-on-the-verge-of-a-contraction/
In its most recent GDPNow report, the Federal Reserve Bank of Atlanta revised its estimate of US GDP growth for the third quarter of 2021 down to 0.2%, meaning that the US economy is incredibly close to contracting. As ZeroHedge reports, that’s “down from 1.2% on October 15, from 6% about two months ago, and down from 14% back in May.“
And, to be clear, that’s not just a revision for the region the Atlanta Fed is in, nor is it simply the subjective assessment of bureaucrats, bankers, and economic doomsayers.
Rather, it’s the result of a mathematical model of America’s economic data. As the GDP Now report states, “GDPNow…is best viewed as a running estimate of real GDP growth based on available economic data for the current measured quarter. There are no subjective adjustments made to GDPNow—the estimate is based solely on the mathematical results of the model.”
Further details of the revision and what went into it come from the report, which states that:
“The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2021 is 0.2 percent on October 27, down from 0.5 percent on October 19. After the October 19 GDPNow update and subsequent releases from the US Census Bureau, the National Association of Realtors, and the US Department of the Treasury’s Bureau of the Fiscal Service, a decrease in the nowcast of third-quarter real government spending growth from 2.1 percent to 0.8 percent was slightly offset by an increase in the nowcast of third-quarter real gross private domestic investment growth from 9.0 percent to 9.3 percent. Also, the nowcast of the contribution of the change in real net exports to third-quarter real GDP growth decreased from -1.56 percentage points to -1.81 percentage points.”
In its most recent GDPNow report, the Federal Reserve Bank of Atlanta revised its estimate of US GDP growth for the third quarter of 2021 down to 0.2%, meaning that the US economy is incredibly close to contracting. As ZeroHedge reports, that’s “down from 1.2% on October 15, from 6% about two months ago, and down from 14% back in May.“
And, to be clear, that’s not just a revision for the region the Atlanta Fed is in, nor is it simply the subjective assessment of bureaucrats, bankers, and economic doomsayers.
Rather, it’s the result of a mathematical model of America’s economic data. As the GDP Now report states, “GDPNow…is best viewed as a running estimate of real GDP growth based on available economic data for the current measured quarter. There are no subjective adjustments made to GDPNow—the estimate is based solely on the mathematical results of the model.”
Further details of the revision and what went into it come from the report, which states that:
“The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2021 is 0.2 percent on October 27, down from 0.5 percent on October 19. After the October 19 GDPNow update and subsequent releases from the US Census Bureau, the National Association of Realtors, and the US Department of the Treasury’s Bureau of the Fiscal Service, a decrease in the nowcast of third-quarter real government spending growth from 2.1 percent to 0.8 percent was slightly offset by an increase in the nowcast of third-quarter real gross private domestic investment growth from 9.0 percent to 9.3 percent. Also, the nowcast of the contribution of the change in real net exports to third-quarter real GDP growth decreased from -1.56 percentage points to -1.81 percentage points.”
