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The Bureau of Economic Analysis (BEA) confirmed the contraction of the national Gross Domestic Product (GDP) to 0.6% during the second trimester of 2022.
In its review with more complete data, the BEA reiterated that the economy contracted for the second consecutive quarter; however, the revised data was slightly lower compared to the one reported last July .
The preliminary data indicated that the GDP had fallen 0.9% between April and June; however, confirmed the second consecutive drop in economic activity.
For weeks speaks of fears of a recession and for some sectors of the national economy, the confirmation of the drop in GDP in the second quarter only reaffirms the idea that the United States is is in a recession, at least technical and, of course, not officially declared.
According to this Thursday’s report from the BEA, in the first quarter of the year, the revised drop in GDP was 1.6%.
In the revised report, the full available data reflects upward revisions to consumer spending activity and private inventory investment, while residential fixed investment was revised downward.
The spending of the federal government and state and local governments was also revised down, although, according to the BEA, they were compensated by greater activity in exports and in the already mentioned consumer spending.
The drop in retail trade was particularly detailed in the updated review this Thursday, noting that there was a decline in sales of merchandise in general, while in the real estate sector there is a decline in commissions of real estate agents.
In the second quarter of the year, decisions of the federal government were also reflected, such as the sale of millions of barrels of oil from the Strategic Reserve as a measure to control the price of gasoline, which reached its ceiling this year in last June.
“Because the oil sold by the government enters private inventories, there is no direct net effect on GDP.”, details the revised report of national economic activity for the second quarter of the year.
In dollar terms, GDP was revised upwards with an increase of 8.4% in annual terms, equivalent to $496,200 million dollars at the end of the second quarter of 2022.
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