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US economy seen narrowly averting back-to-back contractions in Q2

Economists expect GDP to grow at annualised 0.4% in April-June period; consumer spending likely decelerated 1.2% on an annual basis

Photo: Reuters

Photo: Reuters

The US economy may have eked out modest growth in the second quarter to skirt a so-called technical recession, yet at a pace tepid enough to feed concerns of an eventual downturn.

Economists expect gross domestic product grew an annualised 0.4 per cent in the April-June period, which on the surface would be an improvement after the 1.6 per cent drop in the first quarter. However, the breakdown of second-quarter GDP may illustrate a more concerning softening of demand.

The first-quarter decline largely stemmed from a surge in imports and a more moderate pace of consumption. While a narrowing of the trade

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First Published: Jul 27 2022 | 10:36 PM IST

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