NEW YORK (Reuters) - The U.S. economy is expanding at a 2.1% annualized rate in the second quarter based on data that showed increases in domestic retail sales and industrial production in May, the Atlanta Federal Reserve’s GDPNow forecast model showed on Friday.
This was faster than the 1.4% pace estimated by Atlanta Fed’s GDP program on June 7.
Earlier Friday, the Commerce Department said retail sales rose 0.5% last month as consumers purchased more motor vehicles and a variety of other goods. Data for April was adjusted higher to show retail sales gaining 0.3%, instead of dropping 0.2% as previously reported.
Meanwhile, U.S. factory output rose 0.2% in May after falling 0.5% the month before, the Federal Reserve said.
The Atlanta Fed GDP model showed personal consumption expenditures are likely growing at a 3.9% pace, faster than its previous projection of 3.2%.
Reporting by Richard Leong; Editing by Chizu Nomiyama and Nick Zieminski