NEW YORK (Reuters) - The U.S. economy is on track to grow 1.9 percent in the fourth quarter with expected weaker consumer spending and equipment investment growth following a private report on U.S. manufacturing in October, the Atlanta Federal Reserve’s GDPNow forecast model showed on Monday.
This was slower than the regional Fed’s prior estimate of 2.5 percent rate on Friday, the Atlanta Fed said on its website.
The model downgraded its outlook on fourth-quarter real consumer spending growth to 2.4 percent from 2.9 percent and on real equipment investment growth to 1.3 percent from 3.9 percent.
The Institute for Supply Management said on Monday its national manufacturing index slipped to 50.1 in October, the lowest level since May 2013, from a reading of 50.2 in September. The index is barely above the 50 threshold, the dividing line between expansion and contraction.
Reporting by Richard Leong; Editing by Chris Reese