Economic Report: GDP ‘looks great’ but pace won’t last, economists say

Here are comments on Friday’s GDP report that showed economic growth of 4.1% in the second quarter, the fastest pace in nearly four years.

See:U.S. economy accelerates to 4.1% rate in second quarter, fastest in almost 4 years.

• “Overall, these are definitely big numbers, but not unexpectedly so, and should not alter views on the Fed or the second-half outlook much (inventories will be rebuilt in Q3, but exports will likely be softer).” — Avery Shenfeld, CIBC Economics.

• “In one line: Looks great; won’t last,” said Ian Shepherdson, chief economist for Pantheon Macroeconomics. “Looking ahead, the big stories for Q3 will be the slowdown in consumption — Q3 probably was boosted by the tax cuts, but the incremental cash flow effect is now zero — and the reversal of the Q2 inventory and trade swings.

>>> Original Source <<<