The Strategist

U.S. GDP loses by 0.6% in Q2

08/26/2022 - 03:39

After examining more consumer activity data, the U.S. Department of Commerce revised its projection of the nation's GDP decrease in the second quarter.
According to a report from the Bureau of Economic Analysis, the GDP loss year over year is now pegged at 0.6%, while the expected figure was 0.9%.

The research stated that decreases in fixed asset investment, state and local government spending, federal government spending, and private investment in inventories were to blame for the real GDP fall.

Exports and consumer spending both increased in the second quarter compared to the same period last year.

In the first quarter, the country’s economy shrank by 1.6 percent on an annualized basis.

As a result, the GDP has decreased for two consecutive quarters, which is a recession according to established definitions.