The U.S. economy is on track to grow at a 2.3 percent annualized pace in the fourth quarter on expected lower consumer spending and overall investments, the Atlanta Federal Reserve's GDP Now forecast model showed on Tuesday.

The latest fourth-quarter GDP estimate was lower than the 2.7 percent increase calculated on Monday, the Atlanta Fed said on its website.

Forecasts for fourth-quarter growth rates of real consumer spending and real nonresidential equipment investment slipped to 2.1 percent from 2.4 percent and to 2.7 percent from 4.3 percent, respectively, the regional central bank said.

The Atlanta Fed's forecasts for growth rates for real residential investment and real nonresidential structures investment fell from 3.2 percent to 2.2 percent and 0.5 percent to -0.7 percent, respectively.

Atlanta Fed's downgrade on gross domestic product in the fourth quarter followed data released earlier Tuesday on domestic factory activity from the Institute for Supply Management and construction spending from the Commerce Department.

ISM's U.S. manufacturing index rose 51.9 in October, suggesting expansion in the factory sector, but construction spending fell 0.4 percent in September.