The U.S. economy is expected to contract in the second quarter, the latest estimate from the Federal Reserve Bank of Atlanta found.
According to the Atlanta Fed Bank’s GDPNow model, the economy is expected to fall 1 percent in the April-to-June period, down from the 0.3 percent projection from earlier this week.
The regional central bank cited the latest economic data from the U.S. government. Second-quarter real personal consumption expenditures fell to 1.7 percent, down from 2.7 percent. Real gross private domestic investment growth plummeted to -13.2 percent, down from -8.1 percent.
“The nowcast of the contribution of the change in real net exports to second-quarter GDP growth increased from -0.11 percentage points to 0.35 percentage points,” the Atlanta Fed stated….