- US gross domestic product shrank at an annualized rate of 0.9% in the second quarter.
- That missed the 0.5% growth forecast but improved from the first quarter’s 1.6% contraction.
- The report intensifies fears of a technical recession, which describes consecutive quarters of negative growth.
The US economy contracted for a second consecutive quarter, intensifying concerns that elevated inflation and waning demand could drag the country into a new recession.
The economy’s gross domestic product shrank at an annualized rate of 0.9% through the three-month period that ended in June, the Commerce Department announced Thursday in a preliminary estimate. Economists surveyed by Bloomberg expected growth to hit a 0.5% pace. The print reveals the economy continued to shrink after the 1.6% contraction observed in the first quarter.
The Thursday release is among the most highly anticipated economic reports of 2022. The recovery from the coronavirus recession has been significantly slower this year, impeded by supply-chain tangles, weaker spending, and the fastest inflation in 41 years. Trade deficits and slower inventory growth powered an unexpected contraction in the first quarter, marking the first decline since the pandemic crash. The second-quarter reading sparks concerns of a technical recession, which is loosely defined as consecutive quarters of negative GDP growth. Read more »