June 8, 2022
A widely followed Federal Reserve indicator suggests that the US economy may be headed for a second consecutive quarter of negative growth, triggering a recession under a rule-of-thumb definition.
The Atlanta Fed’s GDPNow tracker now predicts an annualized growth of only 0.9 percent for the second quarter, according to a Tuesday update.
Following a 1.5 percent dip in the first three months of the year, the indicator indicates that the economy doesn’t have much farther to fall into what many consider a recession.
Personal consumption expenditures, a measure of consumer spending that accounts for roughly 70% of GDP, were downgraded to a 3.7 percent increase from a previous estimate of 4.4 percent. Furthermore, real gross private domestic investment is predicted to reduce growth by 8.5 percent, down from 8.3 percent previously.
At the same time, a little increase in the trade outlook boosted the estimate.
Source: CNBC
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