The U.S. economy is on track to grow at a 2.0 percent annualized pace in the third quarter following the latest data on government expenditures, the Atlanta Federal Reserve's GDP Now forecast model showed on Wednesday.

Its latest third-quarter gross domestic product growth estimate was higher than the 1.9 percent increase calculated on Oct. 14, the Atlanta Fed said on its website.

The Atlanta Fed also revised its forecast on federal spending in the third quarter to a 0.3 percent increase from a prior estimate of a 0.1 percent decrease.

On Friday, the Bureau of Fiscal Services said in its Treasury Monthly Statement that federal outlays in October totaled $347.58 billion, compared with $274.39 billion in September and $334.43 billion a year earlier.

The Atlanta Fed had steadily reduced its forecast on third-quarter U.S. growth as a result of weaker-than-projected data on business and consumer sectors.

Back in August, its initial projection on third-quarter GDP growth was 3.6 percent. Shortly afterward, it peaked at 3.8 percent and hit a low of 1.9 percent last Friday.