NEW YORK (Reuters) - The U.S. economy is on track to grow 1.9 percent in the first quarter after weaker-than-expected data on domestic retail sales, the Atlanta Federal Reserve’s GDPNow forecast model showed on Tuesday.
That pace was slower than the regional Fed’s prior estimate of 2.2 percent growth on March 9, the Atlanta Fed said on its website.
Earlier Tuesday, the Commerce Department said retail sales dipped 0.1 percent in February and downgraded January’s retail sales to show a 0.4 percent decline instead of the previously reported 0.2 percent increase.
The latest retail sales led the Atlanta Fed’s model to scale back its forecast on first-quarter real consumer spending growth to 2.7 percent from an earlier 3.3 percent.
Reporting by Richard Leong; Editing by Chizu Nomiyama