Third Quarter Poised For Yet More Contraction

The Atlanta Fed's GDPNow Nowcast declined again this morning. Now the projection is for 0.3% growth for the third quarter. Any more slippage and the quarter will be the third straight quarter of contraction.

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2022 is 0.3 percent on September 20, down from 0.5 percent on September 15. After this morning's housing starts report from the US Census Bureau, the nowcast of third-quarter residential investment growth decreased from -20.8 percent to -24.5 percent.

Will three consecutive quarters of contraction suffice for the Biden Regime to finally admit the US economy is in recession? We already know Jay Powell doesn't give a damn so long as inflation is out of control (which it will continue to be no matter what the Fed does).