Menu Close

COVID 19 Not Yet in Latest GDP Figures

First, the coronavirus impacts are not showing up in the Atlanta GDPNow forecast for GDP in Q1.

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2020 is 2.2 percent on April 1, down from 2.7 percent on March 27.

After this morning’s Manufacturing ISM Report On Business from the Institute for Supply Management and the construction spending report from the U.S. Census Bureau, the nowcasts of first-quarter real personal consumption expenditures growth and first-quarter real gross private domestic investment growth decreased from 1.6 percent and 4.5 percent, respectively, to 1.3 percent and 2.4 percent, respectively, and the nowcast of first-quarter real government spending growth decreased from 2.2 percent to 2.0 percent.

atlfedgdpq1

Of course, the lockdowns permeating the US, UK and other countries will have a negative effect on the economy.

facorders

But all The Fed’s horses and all The Fed’s men (sic) can’t put the bubbly stock market back together again. The Dow is down another thousand today.

anotherthou

Yes, The Fed and Treasury have enacted numerous programs to counter the job losses associated with the coronavirus.

humpty

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading