The Federal Reserve Bank of Atlanta reported on Jun. 15 that the United States’ second quarter gross domestic product (GDP) was 0.0 percent. U.S. economic activity contracted 1.4 percent in the first quarter of 2022.
According to Fidelity Investment’s website, “two quarters of consecutive GDP contraction is the standard shorthand for a recession,” which does technically mean the U.S. economy has entered the beginning of a recession.
The National Bureau of Economic Research (NBER) defines a recession as a “significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.”
While there is no guarantee the trend will continue, based on the latest Fed data, the U.S. has at least entered a recession phase.
The Atlanta Fed forecasts Q2 real personal consumption expenditures growth, real gross domestic investment growth, and real government spending growth decreased from 3.7 percent to 2.6 percent, -8.5 percent to -9.2 percent, and 1.3 percent to 0.9 percent, respectively.
This is a breaking news story and will be updated accordingly as it develops.