Moves down from 3.4% to 2.7%

The Atlanta Fed 1Q GDP estimate retraced some of the early estimate surge but is still showing a solid 2.7% growth estimate.

In their own words:

The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2017 is 2.7 percent on February 7, down from 3.4 percent on February 1. The forecasts for first-quarter real personal consumption expenditures growth and real private fixed investment growth fell from 3.8 percent to 3.1 percent and 8.0 percent to 5.8 percent, respectively, following the data releases on February 2 and 3.

It is still early in the quarter. The 1Q GDP will not be released until around April. So there is a lot of data points between now and then that will have an impact on the estimates. Seeing it is still early, those data points can lead to more volatile swings.

The next GDPNow update is Thursday, February 9.