U.S. economy seen growing 2.3 percent in fourth quarter: Atlanta Fed

NEW YORK (Reuters) - The U.S. economy is on track to grow 2.3 percent in the fourth quarter with expected stronger consumer spending and investment growth in the wake of data on U.S. services sector activity in October, the Atlanta Federal Reserve's GDPNow forecast model showed on Wednesday.

This was faster than the regional Fed's prior estimate of 1.9 percent rate on Monday, the Atlanta Fed said on its website.

The model upgraded its outlook on fourth-quarter real consumer spending growth to 2.7 percent from 2.4 percent and on real fixed investment growth to 4.3 percent from 3.0 percent.

The Institute for Supply Management said on Wednesday its non-manufacturing index rose to 59.1 in October from a reading of 56.9 in September. Analysts polled by Reuters had expected a dip to 56.5.

An ISM services reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of the U.S. economy.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

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