The measure of economic output fell for the second quarter in a row, raising fears that the United States could be in a recession.
The Commerce Department said that gross domestic product fell 0.2 percent in the second quarter.
The 0.2 percent decline followed a contraction of 0.4 percent in the first three months of the year.
The formal definition of a recession is based on measures of income, spending and employment, but most economists don't think that's good enough. In the months to come, the G.D.P. data will be revised many times.
The data shows that the recovery is losing steam due to high inflation and rising interest rates. Construction activity rose in the first quarter but fell in the second. Consumer spending was positive but slowed.
Bhave said that they don't think we're in a recession just yet. The underlying trend in domestic demand is showing signs of weakness. The first quarter saw a clear deceleration.
It isn't bad news that a deceleration is on its own. The Federal Reserve has been trying to cool off the economy in a bid to tame inflation, and the White House argues that it is part of a transition to a period of steadier growth after last year's rapid recovery.
The Fed raised interest rates three-quarters of a percentage point on Wednesday for the second month in a row, raising fears that it will cause a recession. Consumers are struggling to keep up with rising prices, and there are signs that layoffs are increasing.
Tim Quinlan, senior economist for Wells Fargo, said that the job market doesn't have to turn around so much.
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