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Most analysts forecasted at least some increase, thus the figure was worse than expected. The statistic used by the U.S. illustrates how much the economy would have dropped over the course of the year if it had been shrinking at the same rate every quarter. The drop was only 0.2 percent quarter to quarter; yet, when comparing year to year, the U.S. GDP showed a rise of 1.6 percent.
Since the GDP fell in the first quarter as well, many analysts are referring to a technical recession (two consecutive quarters of decline). The GDPNow forecasting model from the Federal Reserve Bank of Atlanta in particular supports this. According to the Commerce Department, lower retail sales, a decline in real estate investment, and a decrease in government spending are to blame for the fall.
The outlook for the U.S. GDP is uncertain. After the Commerce Department numbers were made public, U.S. President Joe Biden stated that they did not mean a recession in the nation: "We are employing more people than ever before. Business is investing in the US at an all-time high rate. The industrial sector in the United States is enjoying its best recovery in thirty years. That in no way suggests a recession."
Even while there has been a rise in recent weeks in the number of new claims for unemployment benefits, U.S. unemployment remains low (3.6 percent in June) and there were 1 million more jobs created in the second quarter.
source: cnn.com
Since the GDP fell in the first quarter as well, many analysts are referring to a technical recession (two consecutive quarters of decline). The GDPNow forecasting model from the Federal Reserve Bank of Atlanta in particular supports this. According to the Commerce Department, lower retail sales, a decline in real estate investment, and a decrease in government spending are to blame for the fall.
The outlook for the U.S. GDP is uncertain. After the Commerce Department numbers were made public, U.S. President Joe Biden stated that they did not mean a recession in the nation: "We are employing more people than ever before. Business is investing in the US at an all-time high rate. The industrial sector in the United States is enjoying its best recovery in thirty years. That in no way suggests a recession."
Even while there has been a rise in recent weeks in the number of new claims for unemployment benefits, U.S. unemployment remains low (3.6 percent in June) and there were 1 million more jobs created in the second quarter.
source: cnn.com
