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US GDP shrank 0.9% in Q2, its second straight drop, raising recession odds

Consecutive quarters of falling GDP constitute one informal, though not definitive, indicator of a recession

US GDP
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(Photo: Bloomberg)

AP | PTI Washington
The US economy shrank from April through June for a second straight quarter, contracting at a 0.9% annual pace and raising fears that the nation may be approaching a recession.

The decline that the Commerce Department reported Thursday in the gross domestic product — the broadest gauge of the economy — followed a 1.6% annual drop from January through March.

Consecutive quarters of falling GDP constitute one informal, though not definitive, indicator of a recession.

The report comes at a critical time. Consumers and businesses have been struggling under the weight of punishing inflation and higher borrowing costs.

On Wednesday,

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jul 28 2022 | 6:07 PM IST

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