The U.S. economy is growing at a 4.3 percent annualized rate in the third quarter, following the latest data on producer prices and wholesale inventories, the Atlanta Federal Reserve’s most recent GDPNow forecast model showed.
That was slightly slower than the 4.4 percent pace calculated by the regional Fed’s forecast program on Aug. 3.
The Atlanta Fed’s GDPNow model pared its estimate on inventory investment growth to gross domestic product in the third quarter to 1.91 percentage points from 1.95 points. The next GDPNow update is Wednesday, August 15.
The Atlanta Fed revision came just hours after the U.S. Commerce Department said Thursday domestic wholesale inventories had notched up 0.1 percent in June instead of holding unchanged as it originally reported.
Meanwhile, the Labor Department said U.S. producer prices were unchanged in July for the first time in seven months. Analysts polled by Reuters had projected a 0.2 percent increase from June.
Friday, U.S. consumer prices rose in July and the underlying trend continued to strengthen, pointing to a steady increase in inflation pressures that keeps the Federal Reserve on track to gradually raise interest rates.
The Labor Department said its Consumer Price Index advanced 0.2 percent, the bulk of which was due to a rise in the cost of shelter, driven by higher rents. The CPI rose 0.1 percent in June.
In the 12 months through July, the CPI increased 2.9 percent, matching the increase in June.
Excluding the volatile food and energy components, the CPI rose 0.2 percent, the same gain as in May and June. The annual increase in the so-called core CPI was 2.4 percent, the largest rise since September 2008, from 2.3 percent in June.
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