New York, Atlanta Fed Raise Second-Quarter GDP Forecasts

Two Federal Reserve branches on Friday offered up higher forecasts for economic growth in the second quarter from their prior-week expectations.

The New York Fed said it now expects gross domestic product growth of 1.4% in the current quarter, up four basis points from last week’s forecast. The bank also raised its third-quarter view to 1.7%, also up four basis points.

“Positive surprises from retail sales, capacity, utilization, and industrial production data drove the increase,” it said.

Meanwhile, the Atlanta Fed lifted its view for the second quarter seven basis points to 2.1% from 1.4% a week ago.

The bank said it raised its real personal consumption expenditures growth forecast for the second quarter to 3.9% from 3.2% after data Friday morning showed retail sales rose 0.5% last month while industrial production swung to a 0.4% gain from a 0.4% slide in April.

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