Q1 GDP Expectations Are Crashing

Despite the continuing commentary that all is well in America, economic growth expectations for Q1 just collapsed to a new cycle low. From just 4 months ago, growth expectations have been cut 20% to 2.4%... but that is still four times The Atlanta Fed's dismal 0.6% forecast...


The Atlanta Fed forecasts Q1 growth of just 0.6%...


The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2015 was 0.6 percent on March 12, down from 1.2 percent on March 6. The nowcast for first-quarter real consumption growth fell from 2.9 percent to 2.2 percent following this morning's retail sales release from the U.S. Census Bureau.

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It appears - just as we detailed here - that non-residential capex is catching down and the spending collapse in the hundreds of billions is looming.

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Not "Off The Lows"

One wonders just how The Fed will wriggle out of this box...


Charts: Bloomberg