US: NY Fed's GDP Nowcast drops to 6.3% for Q1 after this week's data

The US economy is expected to grow by 6.3% in the first quarter of 2021 and 1.2% in the second quarter, 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:Q1 by 2.3 percentage points and decreased the nowcast for 2021:Q2 by 2.8 percentage points," the NY Fed explained in its publication. "Negative surprises from advanced retail sales, IP, capacity utilization, and housing data drove the decrease in both quarters."

Market reaction

The US Dollar Index largely ignored this report and was last seen gaining 0.2% on the day at 92.05.