US: NY Fed's GDP Nowcast declines to 3.7% for Q2 after this week's data

Eren Sengezer FXStreet

The US economy is expected to grow by 3.7% and 4.4% in the second and the third quarter of 2021, respectively, the Federal Reserve Bank of New York's latest Nowcasting Report showed on Friday.

"News from this week’s data releases decreased the nowcast for 2021:Q2 by 0.5 percentage point and decreased the nowcast for 2021:Q3 by 0.9 percentage point," the NY Fed explained in its publication. "Negative surprises from advanced retail sales and building permits data accounted for most of the decrease in both quarters, with Empire State Manufacturing survey data also contributing to the decline in 2021:Q3."

Market reaction

This report doesn't seem to be having a significant impact on the USD's performance against its rivals. As of writing, the US Dollar Index was up 0.5% on the day at 92.35.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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