US: Atlanta Fed revised model forecast for Q2 GDP from 2.2% to 2.8% - Westpac

Sean Callow, Research Analyst at Westpac, notes that the US retail sales rose 1.3% in April (vs 0.8% expected), well above expectations.

Key Quotes

“Notable features were a massive 0.9% m/m gain in control group sales (the closest match to consumption in the GDP report) and a sizeable rebound in motor vehicle sales, which should see Q2 GDP forecasts revised higher. The Atlanta Fed revised its model forecast for Q2 GDP from 2.2% to 2.8%. Consumer sentiment (Michigan U.) rose from 89.0 to 95.8 (vs 89.5 expected). Supporting factors included higher equity and house prices, and low gasoline prices.”