WASHINGTON (AP) — The U.S. economy shrank from April through June for a second straight quarter, contracting at a 0.9% annual pace and raising fears that the nation may be approaching a recession. Higher borrowing rates, a consequence of the Federal Reserve's series of rate hikes, clobbered home construction, which shrank at a 14% annual rate. In the wake of Thursday’s government report, Biden dismissed any notion that the data depicted an economy in recession. Before accounting for surging prices, the economy actually grew at a 7.8% annual pace in the April-June quarter. Even with the economy recording a second straight quarter of negative GDP, many economists do not regard it as constituting a recession.

Source: Forbes July 28, 2022 11:28 UTC