Atlanta Fed: GDPNow model forecast for real GDP growth in Q3 rose to 2.7%

"The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2017 is 2.7 percent on October 2, up from 2.3 percent on September 29," the Federal Reserve Bank of Atlanta announced on Monday.

Key takeaways:

• The forecasts for third-quarter real consumer spending growth and third-quarter real private fixed investment growth increased from 1.8 percent and 0.3 percent, respectively, to 2.3 percent and 1.8 percent, respectively, after this morning's construction spending release from the U.S. Census Bureau and this morning's Manufacturing ISM Report On Business from the Institute for Supply Management (ISM).
• The model's estimate of the dynamic factor for September—normalized to have mean 0 and standard deviation 1 and used to forecast the yet-to-be-released monthly GDP source data—increased from 0.04 to 1.59 after the ISM report.