The US economy shrank by 0.9% over the past three months

By Hardik Wasanwal

US economy

This is the second consecutive quarter where the economy has contracted. In the first quarter, gross domestic product, or gross domestic product, declined at an annual rate of 1.6%.

While negative growth for two consecutive quarters is considered bearish, this is not the official definition. A non-profit, nonpartisan organization called the National Bureau of Economic Research determines whether the U.S. The economy is in recession. An NBER committee made up of eight economists makes that determination and a number of factors go into that calculation.

The White House has pushed against calling the current economy a recession. There is no doubt that the economy is going to play a role in the mid-term elections.

President Biden cited record job growth and foreign trade investment as a sign of strength in the economy. "It doesn't sound like a recession to me," Biden concluded.

"When you're creating about 400,000 jobs a month, it's not a recession," she said.

However, there were bright spots. Wages were increasing and people were traveling outside to eat in restaurants. Total income increased.

The GDP report showed that businesses had layoffs. Undoubtedly, borrowing has become more expensive with the increase in interest rates by the Federal Reserve. So there is less money to invest. The main concern is whether this will start to impact job growth.

Retailers had a lot of inventory to work with, so those businesses were also spending less. And housing, which has been heating up during the pandemic, is beginning to cool with the rise in mortgage rates.