N.Y. Fed cuts U.S. first quarter GDP view to 1 percent after dismal data By Reuters

© Reuters. FILE PHOTO: Shoppers carry bags of purchased merchandise at the King of Prussia Mall, United States

© Reuters. FILE PHOTO: Shoppers carry bags of purchased merchandise at the King of Prussia Mall, United States’ largest retail shopping space, in King of Prussia

NEW YORK (Reuters) – A New York Federal Reserve forecast program on Friday slashed its estimate on U.S. economic growth in the first quarter in the wake of this week’s worrisome data on inflation, retail sales and industrial output.

The regional central bank’s forecast model halved its projection on first-quarter growth for gross domestic product to 1.08 percent from 2.17 percent calculated a week ago.

Signs of a flagging economy have led Fed policy-makers to become cautious on raising key lending rates further. They also signaled they were open to end the reduction of the Fed’s bond holdings earlier than they had planned.

Earlier Friday, the Fed said domestic factory production fell 0.9 percent last month, the steepest fall in eight months.

Prices of imported goods and services into the United States fell 0.5 percent in January, resulting in the largest annual decline in nearly 2-1/2 years, according to the Labor Department.

The Commerce Department said on Thursday retail sales plunged 1.2 percent in December for their biggest drop in more than nine years.

N.Y. Fed’s Nowcast model also cut its estimate on GDP growth in the fourth quarter of 2018 to 2.23 percent from 2.41 percent it calculated a week earlier.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here