Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Atlanta Fed’s GDPNow Slashes Q3 GDP Forecast in Half

  by    1   0

The Federal Reserve Bank of Atlanta’s GDPNow estimate released today reveals a terrible early forecast for third quarter gross domestic product (GDP) growth. It’s especially bad when compared to Wall Street expectations.

The GDPNow model puts Q3 2015 GDP growth at 0.9% – that’s a 50% drop from just three days ago. The Atlanta Fed explains:

The model’s nowcast for the contribution of net exports to third-quarter real GDP growth fell 0.7 percentage points to -0.9 percentage points on September 29 following the advance report on U.S. international trade in goods from the U.S. Census Bureau.”

What’s most telling about this report is how different the GDPNow forecast is from the “Blue Chip consensus,” which is the expectations of mainstream business economists followed by Wall Street. Check out this chart:

15 10 01 GDP Now Forecast


Even the most pessimistic Blue Chip forecasts are significantly above the GDPNow forecast. Wall Street wants to believe the US economy is well above a 2% GDP growth rate in the third quarter, while the Atlanta Fed now places it below 1%.

Of course, Peter Schiff has been warning all year that 2015 would see terrible GDP growth (if any). Peter actually believes that the United States is heading into a recession – if it isn’t in one already. The GDPNow data is just further proof that most of the mainstream financial world is at odds with Peter’s analysis, even if this report from an actual branch of the Fed supports his pessimism towards the US economy.

It’s not even the first time this year that mainstream analysts have ignored the GDPNow forecast. Last Spring, Peter wrote about how everyone ignored the GDPNow forecast for negative Q1 growth. Of course, we now know that the Atlanta Fed’s model was correct, and the market consensus was wrong – Q1 GDP was down 0.2%.

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Summer Feeling Hotter Than Usual? Gold Could Be Too.

Certain climate scientists, research economists, and precious metal investors agree: This year could be one of the hottest on record.

READ MORE →

Metal of the future? Gold‘s uses in technology

While demand for Gold as an investment has risen greatly historically, and particularly over the past year, recent technological discoveries provide powerful potential for Gold to increase in prominence as an industrial resource. While gold does provide an excellent and relatively safe store of value, its industrial use could rapidly increase its price and universal […]

READ MORE →

Gold’s Natural Scarcity Propels its Valuation Growth

The U.S. abandoned the gold standard in 1933. But ninety-one years later, in the midst of an inflation crisis, investors are flocking back to the original. The U.S. government is set to print about $200 billion in bills in 2024. That’s $548 million for every day. Despite the rampant inflation reducing consumer purchasing power around […]

READ MORE →

SchiffGold Exclusive: Utah State Representative Speaks on New Precious Metals Law

As the U.S. economy progresses toward monetary catastrophe, individual states are taking action to preserve and enable the use of sound money. Utah recently passed HB 348, which took effect in May and authorizes the state to invest a portion of its funds in precious metals. State Representative Ken Ivory sponsored the bill, and in […]

READ MORE →

Chinese Central Bank Halts Gold Acquisitions

China has called quits on its 18-month gold buying spree, causing precious metal prices to stumble this week as the world’s largest buyer unexpectedly closes its tab. In 2023, the People’s Bank of China purchased more gold than any of the world’s other central banks, swelling its reserves of the precious metal to more than […]

READ MORE →

One thought on “Atlanta Fed’s GDPNow Slashes Q3 GDP Forecast in Half

  1. As usual the govt. lies, and lies, then try’s to correct it by spending more money which devalues the dollar. I am sitting on my physical assets awaiting for the dow to crash. Afterwards when I feel that the bottom has been reached, I will be using the money on my hard assets (gold/silver) to buy bargain good stocks

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now