Comes back in line (or closer) to the concensus estimates before GDP tomorrow.
The Atlanta Fed has cut their estimate for third-quarter GDP to 3.6% from 3.9%. Their estimates have been consistently above market expectations (they were as high as 5% at one point), but have come back toward consensus of 3.3% before the GDP release tomorrow. They did provide the Trump administration with a high number through the quarter. Pres. Trump liked the Atlanta Fed (did not like the NY Fed which has been lower than the estimates).
IN their own words:
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2018 is 3.6 percent on October 25, down from 3.9 percent on October 17. The nowcast of third-quarter real residential investment growth fell from -1.6 percent to -4.1 percent after housing market reports from the National Association of Realtors and the U.S. Census Bureau. An increase in the nowcast of third-quarter real nonresidential equipment investment growth from 2.7 percent to 3.8 percent was more than offset by declines in the nowcasts of the contributions of net exports and inventory investment to third-quarter real GDP growth from -1.11 percentage points and 2.20 percentage points, respectively, to -1.24 percentage points and 2.08 percentage points, respectively, after this morning's advance reports on durable manufacturing, international trade, and inventories from the Census Bureau.
