U.S Now Technically in Recession — Second Consecutive Quarter of Negative Growth Reported

U.S Now Technically in Recession — Second Consecutive Quarter of Negative Growth Reported

The United States is now technically in a recession, after two consecutive quarters of negative growth. 

On Thursday, the Bureau of Economic Analysis announced that real gross domestic product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of 2022, according to the "advance" estimate released.

In the first quarter, real GDP decreased 1.6 percent.

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Officially, it is up to the National Bureau of Economic Research to declare are recession — which the group of economists has not yet done. 

“Two back-to-back quarters of negative growth are a common rule of thumb that a recession is underway, but the group evaluates a range of indicators to determine whether a recession is occurring — including the labor market, which remains solid,” reports Axios. 

 

"On the Right Path" Says Biden

President Joe Biden weighed in on Thursday — and did not make mention of a recession. 

"Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation," Biden said in a statement Thursday. "But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure."

Biden pointed to the job market, saying it "remains historically strong, with unemployment at 3.6% and more than 1 million jobs created in the second quarter alone."

"Consumer spending is continuing to grow," Biden said.