AA / Istanbul
The U.S. economy contracted 0.9%, on an annual basis, during the second quarter of 2022, in another burst of problems plaguing the world’s largest economy.
The U.S. Commerce Department’s Bureau of Economic Analysis said in a statement Thursday that the first reading showed the economy contracting 0.9% in the second quarter of 2022, from a contraction of 1.6%. % raised in the first quarter.
The new figures emerge at a turbulent time for the economy, although economists disagree on the possibility of a full-blown recession.
Technically speaking, these 6 months of negative growth indicate a recession, however the unemployment, labor market and consumer figures are still regaining some strength in the United States.
The contraction noted in the second quarter reflects a change in the behavior of consumers and businesses. As retailers purchased fewer goods, such as cars, consumers shifted spending away from goods to services such as restaurants and hotels.
Lower housing investment and government spending also contributed to the negative reading of the data released today.
The US economy is experiencing the highest inflation in 41 years at 9.1%, and home sales are down. The strong labor market is even beginning to show cracks, amid concerns over the war in Ukraine, the global financial outlook and interest rate hikes.
* Translated from Arabic by Mounir Bennour.
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