The U.S. economy is on track to grow at a 3.4 percent annualized pace in the third quarter based on the latest data on industrial output, home sales and durable goods orders, the Atlanta Federal Reserve’s GDP Now forecast model showed on Friday.

The latest gross domestic product estimate for the quarter was weaker than the 3.8 percent growth calculated on Aug. 16, it said.

A day later, the Atlanta Fed lowered its GDP growth view to 3.5 percent after the Federal Reserve Board said that factory output slipped 0.1 percent last month.

In its latest forecast, the Atlanta Fed said it estimated residential investment growth in the current quarter turned negative to -0.4 percent from 3.4 percent following drops in new and existing home sales in July.

However, it said it raised its projection of non-residential equipment investment growth to 8.1 percent from 6.4 percent following the July durable goods orders report released earlier on Friday.