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Atlanta Fed GDPNow Revised From 4.1 To 3.5% After Retail Sales

US DATA
  • Having swung back to tracking Q4 GDP growth of circa 4% annualized around the turn of the year, Atlanta Fed’s GDPNow has been cut back to 3.5% with today’s softer than expected retail sales playing a prominent role. It had seen 4.1% with the Jan 10 update.
  • Q4 gross personal consumption expenditures growth revised down from 3.5% to 2.6%, gross private domestic investment growth from 6.8% to 6.6% and real government spending growth from 1% to 0.8%.
  • Still, perceived real GDP growth of 3.5% in Q4 after 3.2% in Q3 is still solid and goes to St Louis Fed’s Bullard’s earlier point that 2H22 GDP came in much stronger than anticipated whilst he also saw the prospects for a soft landing having improved.

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