Atlanta Fed Forecasts Robust 5.8% US GDP Growth in Q3

The Federal Reserve Bank of Atlanta has raised its estimate for US economic growth in the third quarter from 4% to nearly 6%, citing a surge in new construction projects for single-family homes and better-than-expected industrial production. The forecast is driven by strong personal consumption, including a surge in car sales and sustained strength in retail sales. However, there are concerns that the Fed's prediction of positive residential investment may be too optimistic. Retail sales growth in July was the strongest since January, indicating a broad-based improvement across various sectors of the US economy.