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Economics

US Economy Shrinks for a Second Quarter, Fueling Recession Fears

  • GDP dropped an annualized 0.9% in April to June period
  • Consumer spending slowed on decrease in merchandise outlays
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US Economy Shrinks for Second Straight Quarter
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The drumbeat of recession grew louder after the US economy shrank for a second straight quarter, as decades-high inflation undercut consumer spending and Federal Reserve interest-rate hikes stymied businesses and housing.

Gross domestic product fell at a 0.9% annualized rate after a 1.6% decline in the first three months of the year, the Commerce Department’s preliminary estimate showed Thursday. Personal consumption, the biggest part of the economy, rose at a 1% pace, a deceleration from the prior period.