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1Q 2017: Atlanta Fed Slashes Growth Forecast




While Obamacare lives, tax reform dies and America reverts to its failed interventionist foreign policy, there’s bad news on the economic front …

According to the latest estimate from the Atlanta Federal Reserve, economic growth in the first quarter of 2017 is projected to clock in at 0.6 percent.  If accurate, that would be the worst quarterly economic reading since the first quarter of 2014.

What gives?  Good question.  Two months ago, this metric was projecting quarterly growth of 3.4 percent.  Just last week it stood at 1.2 percent.

Take a look at the precipitous decline …

(Click to view)

(Via Atlanta Fed)

What’s driving this?  According to the agency, weak auto sales, ongoing slowness in consumer activity and a softening labor market …

The first of three “official” first quarter GDP estimates – to the extent this data can be trusted – will be released by the U.S. Bureau of Economic Analysis (BEA) at the end of April.  Revisions will be issued in May and June.

Last week, the BEA published its final estimate for the fourth quarter of 2016 – revealing 2.1 percent growth for the quarter and 1.6 percent growth for the year.

U.S. president Donald Trump has set an ambitious goal of four percent annual GDP growth for his administration – but he can’t seem to get his policies through the “Republican-controlled” Congress.  And now he’s distracted by another military misadventure in the Middle East.

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