The U.S. economy shrank for a second consecutive quarter, according to the Bureau of Economic Analysis.
By one definition that would mean the U.S. is in a recession, although that declaration must officially be made by the National Bureau of Economic Research.
The U.S. gross domestic product, a measure of the goods and services produced across the economy, fell at an annualized rate of 0.9% in the second quarter. U.S. GDP declined at an annualized rate of 1.6% in the first quarter. By comparison, Connecticut’s first-quarter GDP retracted by 1.4%.
The decrease in second quarter real GDP reflected declines in private inventory and residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment, according to BEA. Those declines were partly offset by increases in exports and personal consumption expenditures.
The smaller decrease compared to the first quarter reflected an upturn in exports and a smaller decrease in federal government spending, BEA said.
News on the declining GDP comes a day after the Federal Reserve raised interest rates by 0.75 percentage point, a move made to try to curb high inflation.
