Atlanta Fed GDPNow Q3 tracking model jumps to 1.3% from 0.7%

Atlanta Fed model predicts better GDP growth on motor vehicle sales

"The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2015 is 1.3 percent on August 18, up from 0.7 percent on August 13.

The forecast for real GDP growth increased from 0.7 percent to 1.2 percent after Friday's industrial production release from the Federal Reserve. Most of this increase was due to a 15.3 percent increase in seasonally adjusted motor vehicle assemblies in July that boosted the forecast of the contribution of real inventory investment to third-quarter GDP growth from -2.2 percentage points to -1.8 percentage points."

The consensus is around 2.75% so despite the jump, the model is still way below what Wall Street economists expect for Q3.