The Bureau of Economic Analysis (BEA) reports that the U.S. economy fell into a technical recession in the second quarter as the GDP growth rate fell by 0.9 percent. This is the second consecutive quarter in which the GDP has fallen.
As a result of declines in private inventory investment, government spending, residential and nonresidential fixed investment, GDP declined. Personal consumption expenditures (PCE) and imports offset this decline.
In the previous quarter, BEA data indicated that the GDP price index rose 8.9 percent, exceeding the market's estimate of 7.9 percent. There was a 1.1% increase in GDP sales.
The Fed Bank of Atlanta GDP Now model estimated a 1.2 percent contraction in the April-to-June period before the release of second-quarter data.
Silver and gold prices both rose 4.9 percent and 1.4 percent, respectively, from overnight trading. The New York Mercantile Exchange also reported a 2.1 percent gain in WTI crude oil futures to $99.32 per barrel.
28 July 2022
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