NEW YORK (Reuters) - The U.S. economy is on track to grow by a 2.7 percent annualized rate in the second quarter following data on consumer spending in May, the Atlanta Federal Reserve's GDPNow forecast model showed on Wednesday.
The latest GDP estimate was slightly faster than the 2.6 percent pace calculated on June 24, the regional Fed said on its website.
On Wednesday, the Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economy, rose 0.4 percent last month following an upwardly revised 1.1 percent jump in April.
Based on these spending figures, the Atlanta Fed said its forecast on real consumer spending growth in the second quarter increased from 4.1 percent to 4.3 percent.
The growth in consumer spending was mitigated by a drop in the forecast of the second-quarter change in net exports in 2009 dollars to $11 billion from $14 billion after Monday's advance report on international trade in goods, the regional central bank said.
(Reporting by Richard Leong; Editing by Chizu Nomiyama)