Federal Reserve Bank of Atlanta’s GDPNow Index now sees the US economy contracting by 35.2% in the second quarter compared to the previous projection of 36.8% contraction made on July 1.
A month ago, the index was showing a 52.8% tumble in the second quarter.
GDPNow Index is the running estimate of real gross domestic product (GDP) growth that undergoes regular revisions. Its accuracy increases as it gets closer to the end of the quarter.
As such, the latest forecast could be considered reliable. That said, markets are forward-looking and risk assets may come under pressure if the second wave of the coronavirus outbreak forces the US and other countries to reimpose lockdown restrictions.
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