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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
Bloomberg business news
US Economy Shrinks for Second Straight Quarter
Updated on

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.