NEW YORK -- The U.S. economy is projected to expand by 1.9 percent in the second quarter following government data that showed a 1.2 percent increase in retail sales in May, Atlanta Federal Reserve's GDPNow forecast model showed on Thursday.
The regional Fed's prior estimate on June 3 showed a 1.1 percent growth in gross domestic product in the second quarter.
The GDPNow model has added 1 full percentage point to its second-quarter GDP estimate since May on improved figures on trade, jobs, retail sales and service sector activity.
The upwardly revised GDP estimate is still below some of the forecasts of top Wall Street firms.
On Thursday, Goldman Sachs economists raised their second-quarter GDP tracking estimate by 0.2 percentage points to 3.0 percent due to the May rise in retail sales.
J.P. Morgan economists left their second-quarter GDP call unchanged at 2.0 percent.
Atlanta Fed's GDP forecast model caught traders' attention earlier this year when it nearly nailed the government's first reading on first-quarter GDP, which showed a 0.2 percent rise.
The GDPNow program called for a 0.1 percent increase, compared with a 1.0 percent gain among economists polled by Reuters.
