U.S. economy could be in a recession or not

July 28, 2022

The U.S. gross domestic product fell 0.9 percent in the second quarter, following a negative result for the first three months of the year. Two consecutive down quarters are typically defined as a recession, but this year’s results are not so straightforward. “The numbers are baffling right now — we just don’t normally see declining GDP and rising employment,” said Betsey Stevenson, an economics professor at the University of Michigan and research associate at the National Bureau of Economic Research. “Employment is still growing. Consumer spending has not taken much of a hit. Households have stronger balance sheets than we normally have.”

Recent News