The U.S. economy is expected to expand at a 3.0 percent annualized pace in the second quarter based on the latest data on factory activity, vehicle sales and wholesale inventory, the Atlanta Federal Reserve's GDP Now forecast model showed on Friday.

The latest second-quarter gross domestic product estimate was weaker than the prior reading of 3.4 percent calculated on June 2, the Atlanta Fed said.

Friday's reading was the regional Fed's lowest yet since it released its initial forecast on economic growth for the second quarter on May 1 when it stood at 4.3 percent.

Business and consumer activities have shown a bounce back from an anemic first quarter when GDP grew 1.2 percent, but they have on balance fallen short of traders' and analysts' expectations so far in the second quarter.

On Friday, the Commerce Department said wholesale inventories fell 0.5 percent in April, a steeper decline than an earlier reported 0.3 percent decline and marking its biggest drop in more than a year.

This led to the Atlanta Fed to reduce its view on contribution of inventory investment to second-quarter growth declined to 0.77 percentage point from 0.87 point.