Q2 GDP Commentary from MBA's Mike Fratantoni

The following is MBA SVP and Chief Economist Mike Fratantoni’s reaction to this morning’s U.S. Commerce Department report on Q2 GDP:

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"The economy grew at a faster pace in the second quarter of this year, rising to 2.8% from 1.4%. Both an increase in consumer spending on durable goods and business spending on inventories accounted for a substantial part of last quarter’s expansion. Weaker net exports reflect a global economy that continues to operate in a lower gear as well as a stronger dollar. While top line growth is above the pace needed to keep the unemployment rate from rising further, the components do suggest the economy may slow from here.

"The inflation data is consistent with recent news showing a downward trend, which should provide enough confidence for the Federal Reserve to cut rates in September.”