NEW YORK (Reuters) - The New York Federal Reserve on Friday raised its estimate of U.S. gross domestic product growth for the third quarter above 2 percent based on this week’s data on retail sales, industrial output and regional manufacturing.
The regional central bank’s “Nowcast” model calculated the economy was expanding at an annualized pace of 2.09 percent in the third quarter, faster than the 1.96 percent rate a week earlier.
“Positive surprises from retail sales, survey, and industrial production data outweighed negative surprises from housing data,” the New York Fed said.
On Thursday, the Federal Reserve said manufacturing output dipped 0.1 percent in July due mainly to a 3.6 percent drop production of motor vehicles and parts.
On Tuesday, domestic retail sales climbed 0.6 percent last month for their largest increase since December 2016. June’s retail sales were revised to show a 0.3 percent gain rather than an earlier reported 0.2 percent fall.
New York Fed’s own Empire State general business conditions index rose from 15.4 points to 25.2 in August, the highest in nearly three years.
On the downside, home construction fell 4.8 percent to a seasonally adjusted annual rate of 1.16 million units, the slowest pace in 10 months, the Commerce Department said on Wednesday.
Reporting by Richard Leong; Editing by James Dalgleish