The New York Federal Reserve said on Friday it raised its outlook for U.S. economic growth in the second quarter, citing positive surprises from industrial production and capacity utilization data in April which helped offset last month’s drop in home construction.

The U.S. gross domestic product was on track to expand at an annualized pace of 2.32%, faster than the prior estimate of 1.88% on May 12, the New York Fed's "Nowcast" program showed.