The U.S. economy shrank at a 0.6% annual rate from April through June, the government said in an upgrade from its initial estimate
FILE - Prospective employers and job seekers interact during during a job fair on Sept. 22, 2021, in the West Hollywood section of Los Angeles. The California Employment Development Department said Friday, Aug. 19, 2022, that the state's unemployment rate was 3.9% in July. That's the lowest since 1976 when the state began using its current method of measuring job growth WASHINGTON — — The U.S. economy shrank at a 0.
Consumer spending, which accounts for nearly 70% of U.S. economic activity, grew at a 1.5% annual pace last quarter, faster than Commerce initially estimated but down from 1.8% from January through March. Under Chair Jerome Powell, the Fed is aiming for a “soft landing,” whereby the economy slows enough to reduce hiring and wage growth without causing a recession and lowers inflation back to the Fed’s 2% annual target. But by tightening credit even while the economy has slowed, the Fed is heightening the risk that its rate hikes will trigger a downturn. The surge in inflation and fear of a recession have eroded consumer confidence and fanned public anxiety about the economy.
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Government revision shows economy shrank 0.6% last quarterThe U.S. economy shrank at a 0.6% annual rate from April through June, the government said Thursday in a slight upgrade from its initial estimate.
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