After a decline in economic output at the beginning of the year, US gross domestic product (GDP) fell by an annualized 0.9 percent in the second quarter, the Department of Commerce announced on Thursday in Washington based on an initial estimate.

Analysts, however, had expected slight growth of 0.4 percent.

Since the US economy shrank by an annualized 1.6 percent in the first quarter, the definition of a technical recession is met.

This is what economists talk about when economic output falls two quarters in a row.

US growth figures are extrapolated for the year, i.e. annualized.

They are therefore not directly comparable with growth data from Europe, where this is not the case.

To approximate a growth rate comparable to Europe, you would have to divide the US rate by four.

Fed hikes interest rates

Meanwhile, the labor market in the USA developed weaker than expected in the past week.

The number of initial jobless claims fell by 5,000 to 256,000, the Department of Labor announced in Washington on Thursday.

On average, analysts had only expected 250,000 applications.

In addition, the previous week's value was revised upwards from 251,000 to 261,000.

The initial applications are a short-term indicator of the development of the job market in the world's largest economy.

However, the situation on the job market is considered to be comparatively robust, which is also indicated by the low level of applications for aid for a long time.

The US Federal Reserve also bases its monetary policy on the situation on the labor market.

At the moment, however, the focus is on the high inflation rate of more than nine percent.

The Fed hiked interest rates again on Wednesday.

A robust labor market usually leads to higher wages and can thus further fuel inflation.