US Economy Shrank for 2nd Consecutive Quarter
Summary from AllSides News Team
The U.S. economy shrank for the second consecutive quarter, meeting the common definition of an economy in recession.
The Bureau of Economic Analysis (BEA) reported Thursday that U.S. gross domestic product (GDP) shrank 0.9% between April and June, after contracting 1.6% in the first quarter of 2022. Economists surveyed across the spectrum expected slight GDP growth in Q2, between 0.5% and 1%. The back-to-back quarters of economic decline are in contrast to the 6.9% GDP growth experienced in the final quarter of 2021.
Many look to the National Bureau of Economic Research (NBER) to officially declare a recession. NBER defines a recession as "a significant decline in economic activity, spread across the economy for more than a few months," but it typically doesn't issue a recession declaration until months after the data has come out. The Biden administration has been adamant that the U.S. economy is healthy despite the contractions and high inflation, and a recent White House blog post emphasized how NBER will consider other factors in addition to GDP when analyzing a possible recession.
The GDP data was the top story across the political spectrum Thursday, with most framing it in the context of ongoing recession fears. One Fox Business (Lean Right bias) report said the data indicated a "technical recession" and referred to NBER as the "semi-official" arbiter of recessions. Reports from CNN Business and Wall Street Journal instead called NBER the "official" recession arbiter.
Featured Coverage of this Story
From the RightEconomy in recession range, with GDP contracting 0.9% in second quarter
GDP fell at a 0.9% annualized rate in the second quarter, a preliminary estimate from the Bureau of Economic Analysis showed Thursday morning.
The report marks the second straight quarter of declining inflation-adjusted GDP — a situation commonly used to define a recession. GDP tumbled at a 1.6% rate in the first quarter.
Thursday’s numbers indicate that the economy has been struggling to stay above water during the historic monetary policy tightening cycle by the Federal Reserve, which is trying to lower soaring inflation. Residential investment cratered, a sign of the housing...
From the LeftUS economy contracts again, fueling recession fears
The US economy shrank again in the second quarter, the Bureau of Economic Analysis said Thursday.
Gross domestic product, a wide-ranging measure of economic activity, fell by 0.9% on an annualized basis from April through June. That decline marks a key symbolic threshold for the most commonly used — albeit unofficial — definition of a recession as two consecutive quarters of negative economic growth.
The hotly anticipated data release has taken on outsized significance as investors, policymakers and ordinary Americans seek some measure of clarity in the current muddled economic...
From the CenterU.S. GDP Fell at 0.9% Annual Rate in Second Quarter
The U.S. economy shrank for a second quarter in a row—a common definition of recession—as businesses trimmed their inventories, the housing market buckled under rising interest rates, and high inflation took steam out of consumer spending.
Gross domestic product, a broad measure of the goods and services produced across the economy, fell at an inflation and seasonally adjusted annual rate of 0.9% in the second quarter, the Commerce Department said Thursday. That marked a deterioration from the 1.6% rate of contraction recorded in the first three months of 2022.
The report indicated...