U.S. Economy Grew 2.8% in Q2; MBA Economist Weighs In

(Image courtesy of Bureau of Economic Analysis)

The real gross domestic product increased at an annual rate of 2.8% in the second quarter of 2024, per the “advance” estimate released by the U.S. Bureau of Economic Analysis.

The pace is adjusted for seasonality and inflation.

This compares with the first quarter of 2024, when real GDP was up 1.4%.

“The economy grew at a faster pace in the second quarter of this year, rising to 2.8% from 1.4%,” said MBA Chief Economist Mike Fratantoni. “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,” Fratantoni continued.