{"id":206459,"date":"2022-07-28T16:25:07","date_gmt":"2022-07-28T15:25:07","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=206459"},"modified":"2022-07-28T16:25:07","modified_gmt":"2022-07-28T15:25:07","slug":"u-s-economy-shrinks-for-2nd-straight-quarter-raising-fears-of-a-recession","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/07\/28\/u-s-economy-shrinks-for-2nd-straight-quarter-raising-fears-of-a-recession\/","title":{"rendered":"U.S. economy shrinks for 2nd straight quarter, raising fears of a recession"},"content":{"rendered":"<p>There are raising fears that the U.S may be approaching a recession as the country&#8217;s economy has shrank from April through June for a second straight quarter, contracting at a 0.9% annual pace.<\/p>\n<p>There was a 1.6% annual drop from January through March in the gross domestic product which is the broadest gauge of the <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/03\/27\/nigerias-economy-remains-weak-with-too-much-unemployment-tinubu\/\">economy<\/a>.<br \/>\nThis report is according to the decline that the Commerce Department reported Thursday July 28.<\/p>\n<p>Consecutive quarters of falling GDP constitute one informal, though not definitive, indicator of a recession.<br \/>\nThe report comes at a critical time as the country&#8217;s consumers and businesses have been struggling under the weight of punishing inflation and higher borrowing costs.<br \/>\nThe report comes just a day after the US Federal Reserve raised its benchmark interest rate by 0.75 per cent for the second time in a row as it continues efforts to conquer the worst surge in inflation in four decades.<\/p>\n<p>The Fed is hoping to achieve a notoriously difficult \u201csoft landing\u201d: An economic slowdown that manages to rein in rocketing prices without triggering a recession.<\/p>\n<p>The strength of America\u2019s job market, Federal Reserve Chair Jerome Powell said at a news conference on Wednesday, \u201cmakes you question the GDP data\u201d.<br \/>\nAsked whether he thought the US was in a recession, Mr Powell said he did not think it was, citing the \u201cremarkably strong\u201d labour market and adding \u201cit doesn\u2019t make sense\u201d for the country to be in a recession right now.<\/p>\n<p>Mr Powell also correctly noted that US GDP data is often revised at a later date. In its press release on Thursday morning the BEA noted that the GDP estimate was based on source data that are either incomplete or subject to revision from the source agency and that the second estimate for the quarter will be released on 25 August.<\/p>\n<p>The most widely accepted definition of a recession comes from the National Bureau of Economic Research, a group of economists whose Business Cycle Dating Committee defines it as \u201ca significant decline in economic activity that is spread across the economy and lasts more than a few months\u201d.<\/p>\n<p>In a statement released by the White House, President Joe Biden said: \u201cIt\u2019s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation. 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. Our job market remains historically strong, with unemployment at 3.6 per cent and more than 1 million jobs created in the second quarter alone. Consumer spending is continuing to grow.\u201d<\/p>\n<p>Prior to the release of today\u2019s data, forecasters surveyed by the data firm FactSet had estimated that the nation\u2019s GDP made a tepid annual gain of 0.8 per cent between the beginning of April and the end of June. Others believed a more anaemic level of 0.2 per cent was possible.<\/p>\n<p>The Federal Reserve Bank of Atlanta\u2019s running estimate of GDP growth, based on available economic data, signalled a 1.2 per cent second quarter decline was on the cards.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are raising fears that the U.S may be approaching a recession as the country&#8217;s economy has shrank from April through June for a second straight quarter, contracting at a 0.9% annual pace. There was a 1.6% annual drop from January through March in the gross domestic product which is the broadest gauge of the [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":206464,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[37],"tags":[704,42913,703,3240],"class_list":["post-206459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world","tag-economy","tag-quarter","tag-recession","tag-u-s"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>U.S. economy shrinks for 2nd straight quarter, raising fears of a recession<\/title>\n<meta name=\"robots\" content=\"index, follow, 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