The Federal Reserve of Atlanta will increase GDP in the second quarter

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      The Atlanta Federal Reserve Bank's GDP Now forecast model showed on Friday that the U.S. economy is expected to grow at an annual rate of 2.1% in the second quarter after data showing retail sales and industrial production growth in May.
That's 1.4% higher than the Atlanta Federal Reserve's June 7 forecast.
Retail sales rose 0.5% in May as American households bought more cars and other goods, the Commerce Department said. The April data were revised upwards to show retail sales growth of 0.3%, rather than 0.2% as previously reported.
Another report released by the Federal Reserve on Friday showed that manufacturing production grew moderately by 0.2% in May and fell by 0.5% in April.
Atlanta's GDP Now model shows that personal consumption expenditure may grow at a pace of 3.9%, faster than previously estimated 3.2%.


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