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US GDP fall by 0.6% in the second quarter


Ağustos, 25 2022
watermark Economic news

According to updated data from the US Department of Commerce, the country's GDP in the second quarter decreased by 0.6% compared to last year. Previously, the decline in GDP was estimated at 0.9%. 


According to the report of the Bureau of Economic Analysis, the assessment of the economy was changed after studying additional data on consumer activity in the United States.


Analysts note that the decline in real GDP is caused not only by a drop in private investment in inventories and investment in fixed assets, but also by a decrease in spending by the federal government, states and local authorities.


At the same time, the volume of exports and consumer spending in the second quarter increased compared to last year.


In the first quarter, the US economy shrank by 1.6% year-on-year. Thus, we are seeing the second consecutive quarterly decline in GDP, which corresponds to the standard definition of a recession. However, the National Bureau of Economic Research continues to reject the existence of a recession in the country, defining it as «a significant decline in economic activity throughout the economy, lasting more than a few months, usually noticeable in production, employment, real income and other indicators.»



    






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