U.S. economic growth in the second quarter could surprise on the downside after data on Thursday showed a widening in the goods deficit in June and a moderate pace of inventory accumulation. The Census Bureau's new advanced economic indicators report showed the advance goods deficit rising 3.7 percent to $63.3 billion last month as imports outpaced export growth. Following the advance goods trade and inventories data, the Atlanta Federal Reserve lowered its second-quarter gross domestic product estimate to a 1.8 percent annualized rate from a previous 2.3 percent pace.
The U.S. economy likely expanded at a 1.8 percent annualized rate in the second quarter following a report on June's advance goods trade balance, the Atlanta Federal Reserve's GDP Now forecast model showed on Thursday. The latest gross domestic product estimate was slower than the 2.3 percent figure calculated on Wednesday, the regional Fed said on its website. The advance goods trade balance is an early reading of the trade balance of goods plus inventories.