NEW YORK (Reuters) - The U.S. economy is on track to grow at a 2.5 percent annualized rate in the second quarter following the latest data on wholesale sales and inventories, the Atlanta Federal Reserve’s GDPNow forecast model showed on Thursday.
The latest GDP estimate was unchanged from the pace calculated on June 3, the regional Fed said on its website.
Earlier Thursday, the Commerce Department said wholesale inventories grew by 0.6 percent in April, which was stronger than the 0.1 percent increase forecast among economists polled by Reuters. The March figure was revised up to show a 0.2 percent gain from the initially reported 0.1 percent rise.
Following the latest inventory readings, the drag on second-quarter GDP from inventory investment was reduced to 0.23 percentage point from 0.27 percentage point, the Atlanta Fed said.
Reporting by Richard Leong; Editing by Andrea Ricci