Washington The US economy shrank in the first half of the year. After an annualized decline in economic output of 1.6 percent in the first quarter, gross domestic product (GDP) fell by 0.6 percent on an annualized basis in the second quarter, the Department of Commerce announced in Washington on Thursday. Preliminary figures have thus been confirmed.
According to the ministry, the decline in the second quarter can be explained primarily by lower inventories and investments by companies as well as declining public spending. On the other hand, the development was supported by exports and consumer spending.
With two negative quarters in a row, the conditions are actually met for economists to be able to speak of a recession, i.e. an economic downturn. However, experts doubt that this is currently the case.
An important counter-argument is the robust labor market with very low unemployment. Initial applications for unemployment benefits have recently fallen significantly. Despite the economic downturn, many companies are currently complaining about a shortage of workers.
Top jobs of the day
Find the best jobs now and
be notified by email.