US: NY Fed's GDP Nowcast declines to 3.2% for Q2 after this week's data

The US economy is expected to grow by 3.2% and 3.9% in the second and the third quarter of 2021, respectively, the Federal Reserve Bank of New York's latest Nowcasting Report showed on Friday.

"News from this week’s data releases decreased the nowcast for 2021:Q2 by 0.2 percentage point and decreased the nowcast for 2021:Q3 by 0.2 percentage point," the NY Fed explained in its publication. "Negative surprises from ISM Manufacturing survey and international trade data accounted for most of the decrease in both quarters."

Market reaction

This report was largely ignored by market participants and the US Dollar Index was last seen posting modest daily losses at 92.43.