The U.S. could be in a deep recession, according to a new estimate from the Federal Reserve Bank of Atlanta.
The Atlanta Fed Bank’s GDPNow model shows that the economy contracted 2.1 percent in the second quarter, down from the previous estimate of -1 percent on June 30.
Following the Institute for Supply Management’s (ISM) manufacturing purchasing managers’ index (PMI) for June and construction activity in May, the forecast signaled a sharp economic downturn in the April-to-June period.
Last month, the ISM manufacturing PMI eased to 53, down from 56.1 in May. The market had penciled in a reading of 54.9. New orders and employment fell, although prices had eased slightly….