NEW YORK (Reuters) - The U.S. economy is on track to grow at a 1.3 percent annualized pace in the first quarter following the latest data on domestic vehicle sales and factory orders, the Atlanta Federal Reserve’s GDP Now forecast model showed on Tuesday.
The latest first-quarter gross domestic product estimate was lower than the 1.8 percent growth rate calculated on March 1, the Atlanta Fed said on its website.
Tuesday’s estimate was the lowest yet on the first-quarter GDP from the regional central bank whose forecast peaked at 2.7 percent a month ago.
The forecasts for first-quarter personal consumption expenditures growth and non-residential equipment investment growth declined to 1.8 percent and 7.3 percent, respectively from 2.1 percent and 9.1 percent, respectively, after last week’s February vehicles sales data.
The forecast of the drag from inventory investment on first-quarter GDP increased to 0.72 percentage point from 0.50 point after the January factory orders report released on Monday.
Reporting by Richard Leong; Editing by Chizu Nomiyama