Atlanta Fed Raises 1Q GDP Growth View to 0.5 Percent

The U.S. economy is growing at a 0.5 percent annualized rate in the first quarter, based on the latest monthly data on government spending, the Atlanta Federal Reserve’s GDPNow forecast model showed on Wednesday.

This was faster the 0.3 pace for the first-quarter gross domestic product that the Atlanta Fed’s GDP program calculated on Monday.

After the Monthly Treasury Statement from the U.S. Department of the Treasury's Bureau of the Fiscal Service was released on Tuesday, March 5, the nowcast of first-quarter real government expenditures growth increased from 1.3 percent to 1.9 percent.

The next GDPNow update is Friday, March 8. 

The U.S. federal government posted a $9 billion surplus in January, according to data released on Tuesday by the Treasury Department.

Analysts polled by Reuters had expected a $25 billion surplus for the month.

The Treasury said federal spending in January was $331 billion, up 6 percent from the same month in 2018, while receipts were $340 billion, down 6 percent compared to January 2018.

The deficit for the fiscal year to date was $310 billion, compared with $176 billion in the comparable period the year earlier.

When adjusted for calendar effects, the budget was in balance in January 2019, compared with a $30 billion surplus the prior year.