The U.S. economy shrank from April through June for a second straight quarter, contracting at a 0.9% annual pace and raising fears that the nation may be approaching a recession.
The decline that the Commerce Department reported Thursday in the gross domestic product -- the broadest gauge of the economy -- followed a 1.6% annual drop from January through March. Consecutive quarters of falling GDP constitute one informal, though not definitive, indicator of a recession.The GDP report for last quarter pointed to weakness across the economy. Consumer spending slowed as Americans bought fewer goods. Business investment fell.
Apart from the United States, the global economy as a whole is also struggling with high inflation and weakening growth, especially after Russia's invasion of Ukraine sent energy and food prices soaring. Europe, highly dependent on Russian natural gas, appears especially vulnerable to a recession. Still, Guatieri said, "the economy has quickly lost steam in the face of four-decade high inflation, rapidly rising borrowing costs and a general tightening in financial conditions."
Spending on goods like appliances and furniture, which had soared while Americans were sheltering at home early in the pandemic, dropped at a 4.4% rate last quarter. Bit spending on services like airline trips and dinners out rose at a 4.1% rate, indicating that millions of consumers are venturing out more.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pope Francis to hold mass outside Quebec City on 2nd day of visit to province | CBC NewsAfter delivering a speech calling for unity and healing to a crowd of more than 100,000 on the Plains of Abraham Wednesday evening, Pope Francis will hold a mass in a basilica to a much smaller audience of 2,000 this morning.
Read more »
U.S. economy shrank 0.9% last quarter, its second straight dropThe U.S. economy shrank from April through June for a second straight quarter
Read more »
Chances of recession rise as U.S. economy shrinks for second straight quarterGDP falls at a 0.9 per cent annualized rate after a 1.6 per cent decline in the first three months of the year. Read more here
Read more »
U.S. economy shrinks for a second quarter, raising recession odds - BNN BloombergThe U.S. economy shrank for a second straight quarter as decades-high inflation undercut consumer spending and sizable Federal Reserve interest-rate hikes stymied business investment and housing demand.
Read more »