The Atlanta Federal Reserve's closely watched GDPNow model has been updated to reflect a decline in the forecasted growth rate for the United States economy in the fourth quarter of 2024. As of January 2, 2025, the GDPNow model indicates a growth of 2.6%, marking a decrease from the previous forecast of 3.1% earlier in the same quarter.
The GDPNow tool is a real-time model used for assessing U.S. economic activity, and its forecasts are derived from economic data as it is released. This recent adjustment underscores a more subdued economic outlook, suggesting potential headwinds facing the U.S. economy as it enters the new year.
This notable shift from earlier projections points to ongoing economic complexities and could influence policy and market expectations going forward. Investors and analysts may closely watch upcoming economic data releases and potential responses from policymakers to gain further insight into the trajectory of economic growth in the coming months.