Atlanta Fed: U.S. Economy Seen Growing 1.2% in 3Q

Economic IndicatorsReuters

The U.S. economy is on track to grow 1.2% in the third quarter on data showing a decline in consumer spending on services in July, the Atlanta Federal Reserve's GDPNow forecast model showed on Friday.

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This was weaker than the regional Fed bank's prior estimate on Wednesday of a 1.4% rise in gross domestic product, the Atlanta Fed said on its website.

The Atlanta Fed said the weakness in real services consumption last month reduced its estimate on personal consumption expenditures to a 2.6% increase for the current quarter from an earlier 3.1% gain.

The Commerce Department said on Friday personal spending grew 0.3% in July, matching June's upwardly revised increase. Analysts polled by Reuters had forecast a 0.4% gain.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)