The Q2 GDP Number Officially Reveals that the US is in a Recession

It was just a matter of time before the figures revealed what American citizens were already experiencing and telling the pollsters in June. The most recent analysis of economic data released on Thursday, which was supposed to measure an accurate reading of U.S. gross domestic product for the second quarter of 2022, revealed that the U.S. economy has shrunk for the second quarter in a row. This has usually a sign of the start of a recession.

CNN Business:

The US economy shrank by 0.6% during the second quarter of the year, according to the latest gross domestic product estimate from the Bureau of Economic Analysis released Thursday.

That matches the most recent GDP estimate and shows the economy was in contraction for the entire first half of the year as businesses readjusted to pandemic-era supply chain disruptions.

The latest scorecard on the economy may reignite the debate as to whether the United States has been in a recession, commonly defined as two consecutive quarters of negative growth.

The report, which comes from a National Bureau of Economic Research panel, is the panel's “third estimate of second-quarter GDP,” according to CNN Business, noted an “upwardly revised levels of consumer spending, federal government spending and business fixed investment,” as well as being “offset by a downward revision to exports and investment in housing, the BEA said.”

It continued:

Gross domestic income, an alternative economic measure of the earnings and costs incurred in production, were revised downward by $47.4 billion to $305.7 billion.

It's obvious that it's bad news even CNN willfully admits: “There’s a 98.1% chance of a global recession, according to a probability model run by Ned Davis Research….The only other times that recession model was this high has been during severe economic downturns, most recently in 2020 and during the 2008 global financial crisis.”

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