Atlanta and New York Fed cut US first quarter GDP view after weak data

April 17, 2017 10:33 AM

The Atlanta and New York Federal Reserve banks downgraded their outlook for U.S. economic growth for the first quarter after disappointing data on retail sales and consumer prices in March. 

First-quarter gross domestic product was on track to grow 0.5 %, which was lower than the 0.6 % growth rate calculated on April 7, the Atlanta Fed said.

The New York Fed said on Friday its first-quarter GDP forecast was 2.09 %, down from 2.56 % a week earlier.

On Friday, the U.S. Commerce Department said retail sales fell 0.2 % in March following a 0.3 % decrease in February, which was the first and biggest decline in nearly a year.

Meanwhile, the Labor Department said its Consumer Price Index declined 0.3 % last month. This was the first decline in 13 months and biggest decrease since January 2015 amid falling prices for gasoline and mobile phone services, which offset rising rents and food costs. 

U.S. financial markets were closed for the Good Friday holiday, while government offices were open.

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