Morgan Stanley raises U.S. third quarter GDP growth view to 2.8 percent

The Morgan Stanley logo is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 19, 2017. REUTERS/Brendan McDermid

NEW YORK (Reuters) - Morgan Stanley economists said on Monday they increased their growth estimate on U.S. gross domestic product in the third quarter to 2.8 percent from 2.6 percent based on the latest data on construction spending and factory activity.

Earlier Monday, the government said construction spending grew 0.5 percent in August after two months of declines, while the Institute for Supply Management said its index on manufacturing activity unexpectedly rose to its strongest level in more than 13 years in September.

Reporting by Richard Leong; Editing by Chizu Nomiyama