Wells Fargo Raises Estimate for First Quarter Growth, Reduces Others

In a report issued today, Wells Fargo said its expectations for near-term growth have ratcheted up, following the fourth quarter’s robust 5.7 percent real GDP growth. "While that number came in almost precisely in line with our forecast, we have raised our estimate for first quarter growth and slightly reduced our expectations for growth during the second and third quarters."

"We expect real GDP to rise at a 3.7 percent annual rate during the current quarter. Business inventories are expected to move back into positive territory for the first time in two years, adding 1.2 percentage points to first quarter growth. Final demand is growing much more modestly. Real final sales are expected to rise at a 2.0 percent annual rate, marking the fourth consecutive quarterly increase."
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