NEW YORK (Reuters) - The U.S. economy likely expanded 2.4 percent in the second quarter following data that showed a May increase in wholesale business inventories and higher government spending in June, the Atlanta Federal Reserve’s GDPNow forecast model showed on Tuesday.
This was a bit stronger than the regional Fed’s prior estimate on July 7 of a 2.3 percent rise in gross domestic product in the second quarter, the Atlanta Fed said on its website.
The GDP tracking estimate would have been higher were it not for a surprise 0.3 percent decline in retail sales in June. This reduced the model’s forecast on consumer spending to 2.7 percent in the second quarter from 2.9 percent.
The Atlanta Fed model’s forecast on second-quarter GDP has risen from its initial estimate of a 0.9 percent rise on April 30.
Reporting by Richard Leong; Editing by Chizu Nomiyama