New economic data released Thursday morning show the national GDP shrinking for the second consecutive quarter, the widespread definition of a “recession.”
A financial report from the Federal Government shows the overall economy contracted by 0.9%.
From Fox News:
Gross domestic product, the broadest measure of goods and services produced across the economy, shrank by 0.9% on an annualized basis in the three-month period from April through June, the Commerce Department said in its first reading of the data on Thursday. Refinitiv economists expected the report to show the economy had expanded by 0.5%.
Economic output already fell over the first three months of the year, with GDP tumbling 1.6%, the worst performance since the spring of 2020, when the economy was still deep in the throes of the COVID-induced recession.
“Policymakers will no doubt be tying themselves in knots trying to explain why the U.S. economy is not in recession,” said Seema Shah, chief global strategist at Principal Global Investors. “However, they make a strong point. While two consecutive quarters of negative growth is technically a recession, other timelier economic data are not consistent with recession.”
Recessions are technically defined by two consecutive quarters of negative economic growth and are characterized by high unemployment, low or negative GDP growth, falling income and slowing retail sales, according to the National Bureau of Economic Research (NBER), which tracks downturns.