by Mike ‘Mish’ Shedlock
It was not at all obvious how today’s allegedly “solid” retail sales report would affect third quarter GDP estimates. As I have pointed out before, good reports do not necessarily translate that way. It all depends on what the models expected.
The FRBNY Nowcast expected a weaker retail sales report boosting its GDP estimate slightly.
However, the Atlanta Fed GDPNow Model expected a better retail report and its GDP forecast ticked lower.
GDPNow Latest Forecast: 1.9 Percent — October 14, 2016