The Atlanta Fed’s latest GDPNow forecast warns that the US economy is headed for a contraction in the first quarter, as weaker consumer spending and a widening trade deficit set the stage for a significant slowdown. The revised estimate now predicts an annualized 1.5% decline, down from the previously expected 2.3% growth rate. This sharp shift comes after January data revealed a widened goods-trade gap and a notable decrease in consumer spending.
Source: https://www.bloomberg.com/news/articles/2025-02-28/atlanta-fed-gdpnow-sees-economy-shrinking-after-friday-data