GDP fell 0.9% in the second quarter, the second straight decline and a strong recession signal

The US economy contracted for the second quarter in a row, hitting a widely accepted rule of thumb for a recession.

The gross domestic product fell at an annual rate of 0.9%. The decline in the first quarter was worse than the estimate and was worse than the actual decline.

The National Bureau of Economic Research officially declares recessions and expansions and won't make a judgement on the period in question for months.

Despite the unusual circumstances of the decline, the second straight negative GDP reading is still a sign of a recession. GDP is the broadest measure of the economy and includes goods and services produced during the period.

The economy is growing at a slower pace but is not in a recession. The economy is close to stalling.

There were a number of factors that contributed to the decline, including decreases in inventories, residential and nonresidential investment, and government spending.

As inflation increased, consumer spending increased just 1%. Spending on services increased by 4.1%, but that was offset by a decline in nondurable goods and durable goods.

The drag on growth in the second quarter was caused by inventories.

Much of the economy's problems were caused by inflation. The price index for domestic purchases was much higher than expected.

The report was to be written. The only positive thing was that inventories played a big part. They won't do the same things in the next quarter. We will avoid a recession if consumers and businesses continue to spend and invest.

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