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Down, down, down. The Atlanta Federal Reserve’s forecast for US economic growth took yet another fall Thursday, and now suggests the world’s biggest developed economy essentially stalled in the first three months of this year.
The regional central bank’s final GDPNow reading came in at an annualised pace of 0.2 per cent, according to data released on Thursday, down from 0.4 per cent reported the previous day. The initial forecast at the end of January was 2.3 per cent, with the maximum coming on February 1 at 3.4 per cent.
There has been much debate on Wall Street about whether the GDPNow forecast will hold true, with some economists pointing to one-time factors as having potentially skewed the model. The consensus among economists is for a 1 per cent growth pace, with a high of 2.2 and a low of 0.2, according to Bloomberg data.
The commerce department issues its first reading, which is subject to substantial revisions later, on Friday.