Posted To: MND NewsWire
Fannie Mae said it is maintaining its forecast for 2016’s GDP at the same 1.8 percent it forecasted in July despite the fact second quarter growth came in a 1.2 percent, more than 1.0 point lower than the company’s forecast last month. The company’s Economic and Housing Outlook report for August calls reports of most of the components of the GDP in the second quarter “disappointing.” The exception was strong real consumer spending. Residential, non-residential, government, and inventory investment spending all slowed growth, Residential investment fell due largely to weakness in single-family home building which subtracted 0.2 percentage points from growth. This was the first time housing has subtracted from growth since the first quarter of 2014. The average annualized rate of growth in the…(read more )