Those expecting today's retail sales bounce would drive up GDP estimates thought incorrectly. The GDPNow Forecast dipped slightly today.
GDPNow Latest Forecast: 1.9 Percent - April 16, 2018
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2018 is 1.9 percent on April 16, down from 2.0 percent on April 10. The nowcast for first-quarter real personal consumption expenditures growth declined from 1.1 percent to 0.9 percent after this morning's retail sales release from the U.S. Census Bureau.
For a recap of the retail sales report, please see Retail Sales Bounce, Led by Autos.
The failure of the model to rise today indicates the model expected an even bigger retail sales forecast than too place.
Mike "Mish" Shedlock