Economic Buzz: US GDP Continues Contraction In Q2 Of 2022

29 Jul 2022 , 09:01 AM

U.S. economic activity unexpectedly saw a continued contraction in the second quarter of 2022, according to a report released by the Commerce Department. Real gross domestic product decreased by 0.9 percent in the second quarter after slumping by 1.6 percent in the first quarter. With GDP unexpectedly declining for the second consecutive quarter, the data signals the U.S. economy is in a technical recession. The drop in GDP in the second quarter reflected decreases in private inventory investment, residential fixed investment, government spending and non-residential fixed investment. Meanwhile, the Commerce Department said the smaller decrease in GDP compared to the first quarter reflected an upturn in exports and a smaller decrease in federal government spending. They were partly offset by the slowdown in consumer spending, larger declines in private inventory investment and state and local government spending and downturns in non-residential fixed investment and residential fixed investment. The report showed the annual rate of growth in core consumer prices, which exclude food and energy prices, slowed to 4.8 percent in the second quarter from 5.2 percent in the first quarter.Powered by Commodity Insights