The latest tracker from the Atlanta Fed fits into the market's narrative of falling growth. The problem would be if it falls below 0% but 1.2% is still fine.

"After this morning’s construction spending release from the US Census Bureau and the Manufacturing ISM Report On Business from the Institute for Supply Management, the nowcasts of fourth-quarter real personal consumption expenditures growth and fourth-quarter real gross private domestic investment growth decreased from 2.7 percent and -2.7 percent, respectively, to 1.8 percent and -3.2 percent," the release said.

The drop brings it into line with the consensus.