NEW YORK (Reuters) – The U.S. economy is on track to grow at a 2.4 percent annualized rate in the third quarter, the Atlanta Federal Reserve’s GDP Now forecast model showed on Friday, following the latest data on inventories, trade and consumer spending this week.
That is lower than the 2.8 percent growth for the third quarter estimated on Sept. 28, the Atlanta Fed said on its website.
The Atlanta Fed said its forecast of third-quarter real consumer spending growth fell from 3.0 percent to 2.7 percent, in the wake of Friday’s personal income and spending data for August.
Its forecast of the contribution of inventory investment to third-quarter growth fell from 0.60 percentage point to 0.26 percentage point, while its forecast of the contribution from net exports increased from -0.13 percentage point to 0.13 percentage point.
(Reporting by Richard Leong; Editing by Bernadette Baum)