The economy is not in good shape. Here's Investors Business Daily on Friday's GDP report:

The U.S. economy expanded at a 1.2% annual rate in the second quarter, barely improving from Q1's downwardly revised 0.8% advance, the Commerce Department said Friday. Wall Street had expected a 2.6% pace.

Consumer spending was very strong -- up 4.2% -- but housing and business investment declined, the latter for a third straight quarter.

The weak GDP report [may] further quiet talk of a Fed rate hike. Going forward, the U.S. consumer may not step up spending so fast. Meanwhile, business investment likely won't rebound, with oil prices falling back toward $40 a barrel and the Brexit vote freezing corporate spending plans in the U.K. and Europe.

Lawrence Yun, chief economist for the National Assocation of Realtors, issued the following statement on the heels of the GDP release:

“GDP growth in the second quarter shows the economy barely above water. It marks the third consecutive quarter of near 1% growth as opposed to the historical long-term average of 3%. Consumers did their job by spending robustly, which should partly be attributed to the $2 trillion in housing wealth accumulation in the past year. However, residential construction fell due to weaker single-family housing starts in the second quarter versus the first quarter. Businesses, meanwhile, are on strike as they cut back spending. Going forward, GDP should avoid recession for the simple reason that more new homes need to be constructed. America is experiencing a housing shortage crisis. More homes need to be built and that in turn will lead to faster economic growth.”

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