The U.S. economy is growing at a 4.1 percent annualized rate in the second quarter following the latest data on consumer spending, the Atlanta Federal Reserve’s GDPNow forecast model showed on Monday.

The latest estimate on gross domestic product growth was slower than the 3.7 percent pace estimated Friday, the Atlanta Fed said.

After Monday morning's construction spending report from the U.S. Census Bureau, the nowcast of second-quarter real government spending growth increased from 0.8 percent to 1.6 percent, while the nowcast of second-quarter real nonresidential structures investment growth decreased from 7.6 percent to 5.3 percent.

The Commerce Department said construction spending increased 0.4 percent in May. Data for April was revised down to show construction outlays rising 0.9 percent instead of the previously reported 1.8 percent surge. The government revised the construction spending data going back to January 2011 in the May report.

The nowcasts of second-quarter real consumer spending growth and second-quarter real nonresidential equipment investment growth increased from 2.7 percent and 4.0 percent, respectively, to 2.9 percent and 4.8 percent, respectively, after Monday morning's Manufacturing ISM Report On Business from the Institute for Supply Management.

The Institute for Supply Management (ISM) said on Monday its index of national factory activity jumped to a reading of 60.2 last month from 58.7 in May. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12 percent of the U.S. economy.

The model's estimate of the dynamic factor for June—normalized to have mean 0 and standard deviation 1 and used to forecast the yet-to-be released monthly GDP source data—increased from 0.15 to 0.77 after the ISM report.

The next GDPNow update is Friday, July 6. 

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