GDP declines for second straight quarter
The Commerce Department released its advanced estimate of economic activity Thursday, showing the U.S. economy, in terms of real Gross Domestic Product (GDP), contracted by 0.9 percent in the second quarter of 2022 – marking two straight quarters of decline. In a new NAFCU Macro Data Flash report, NAFCU Vice President of Research and Chief Economist Curt Long said, “as the tiresome debate drags on as to whether that alone amounts to a recession or whether material weakening in the labor market is also necessary, the numbers clearly point to a slowing economy.”
“The question is whether the deceleration is enough to bring down inflation, but not so much that it leads to a major recession,” Long added. He pointed to nominal consumer spending, which increased nearly 8.0 percent in the second quarter, as evidence that the Fed has “much to do to address sky-high inflation.”
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