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9/4, 5:26 PM (Source: TeleTrader)
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Atlanta Fed cuts projection for US growth to 1.5%

The staff of the subsidiary of the central bank of the United States in Atlanta said on Wednesday that the GDPNow model implies the rate of increase in the real gross domestic product of 1.5% for the third quarter. The unofficial estimate, which includes the effect of inflation, was slashed by 0.2 percentage points for the second day in a row.

The change was mostly attributed to the figures released on foreign trade for July, which brought a decline in deficit by $1.5 billion month on month to $54 billion. However, the contribution of personal consumption expenditures to expansion weakened to 1.91 from 2.02 percentage points. The net exports item slipped by 0.07 points to a negative 0.33 and the equipment component retreated 0.04 points to minus 0.14, against a marginal improvement in residential investment.

The headline is currently the weakest since the series began on July 30. It peaked at 2.3% in rounded terms just two weeks ago.

Breaking the News / IT