US confirms its economy fell 0.1% in the second quarter

Washington, September 29 (EFE). – The US government confirmed this Thursday that the country’s economy fell 0.1% in the second quarter of the year and fell at an annual rate of 0.6%.

This is indicated by the third and final official account of the country’s economic development published by the Bureau of Labor Statistics (BEA), which confirms the technical stagnation of the world’s largest economy, recording a decline for two consecutive quarters – by 0.4%. January to March and the tenth of April to June.

The office noted that this data was produced in the context of high inflation and high interest rates to address them and with other challenges such as problems in the supply chain, although it highlighted the low unemployment rate on the positive side.

But he cautioned that the effects of all these factors cannot be calculated separately when making an economic estimate.

According to these statistics, the decline in the second quarter mainly reflects the decline on the investment side – private and residential – and on the side of public spending, whether at the federal, state or local level.

The declines were partially offset by increased exports and consumer spending.

Imports also rose, which negatively affects the gross domestic product account.

The drop in GDP in two quarters underscores the technical stagnation of the world’s leading economy, despite the government led by Democrat Joe Biden insisting at all times that the United States is not in a recession.

The United States has been trying to contain rates for months, and last week the Federal Reserve approved the fifth consecutive rate hike, which is already in the 3 to 3.25% range, the highest level in the last 14 years.

The US inflation rate is declining although it is still very high, at 8.3% in August.

Unemployment is still very low, although last month it broke its downward streak in the United States when the rate rose by twenty to 3.7%.

Bump / JGB

EFE

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