US economy likely grew 2.3 percent in second-quarter

Oil&Gas Materials 27 July 2016 23:02 (UTC +04:00)

The US economy likely expanded at a 2.3 percent annualized rate in the second quarter following a weaker-than-expected report on domestic durable goods in June, the Atlanta Federal Reserve's GDPNow forecast model showed on Wednesday, Reuters reported.

The latest GDP estimate was slightly slower than the 2.4 percent figure calculated on July 19, the regional Fed said on its website.

Earlier on Wednesday, the US Commerce Department said total orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, dropped 4.0 percent last month, the steepest decline since August 2014, after 2.8 percent fall in May.

The June decline in durable goods orders resulted in the Atlanta Fed's model to downgrade its forecast on real equipment investment in the second quarter, falling by 1.9 percent from its prior estimate of a 1.2 percent decline.

The Atlanta Fed also said lower inventory investments likely subtracted 0.63 percentage point from second-quarter GDP, greater than its previous estimate of a 0.57 percentage point drag.