China News Agency, Washington, September 29 (Reporter Sha Hanting) The final revised data released by the U.S. Department of Commerce on the 29th local time showed that the U.S. gross domestic product (GDP) in the second quarter of this year fell by 0.6% at an annual rate, which was the same as the previous one. Revised readings were flat, still the second straight quarter of declines.
Data show that in the second quarter of this year, personal consumption expenditures, which account for about 70% of the U.S. economy, increased by 2%, an increase of 0.5 percentage points from the previously announced revised data; non-residential fixed asset investment, which reflects business investment conditions, increased by 0.1%. Up 0.1 percentage points from the previous; federal government spending fell 3.4%, and state and local government spending also fell 0.6%.
In addition, the contribution of net exports to economic growth was 1.16 percentage points, down 0.26 percentage points from the previously revised data; private inventory investment dragged down the economy by 1.91 percentage points, down 0.08 percentage points from the previously revised data.
In addition, the U.S. economy shrank by an annualized 1.6% in the first quarter of this year, marking two consecutive quarters of declines in the U.S. economy.
By convention, an economy is considered to have entered a technical recession if it declines for two consecutive quarters.
Economists believe that the labor market remains strong despite the U.S. economy declining for two consecutive quarters.
Therefore, the U.S. economy is not yet in recession.
But with the Federal Reserve aggressively raising interest rates in an effort to lower inflation, the odds of tipping the economy into recession are growing.
The Commerce Department typically makes three estimates of quarterly GDP figures based on constantly improving information.
The Ministry of Commerce will release preliminary third-quarter GDP data on October 27, 2022.
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