US economy enters technical recession

GDP drop of 0.9% in Q2

Elliot Gulliver-Needham
clock • 2 min read

US GDP contracted 0.9% in the second quarter of 2022, putting the country into a technical recession after two consecutive quarters of negative growth.

The GDP numbers defied expectations, with experts predicting 0.5% growth. This followed a contraction of 1.6% in the first quarter of this year putting the US into a technical recession by global standards. However, the US approaches recession differently, arguing it is not determined by two consecutive quarters of negative growth, as is the case in the UK and much of the rest of the world. Instead, the National Bureau of Economic Research determines recession based on a range of factors such as GDP, real income and employment. The NBER has not yet designated the US economy as bein...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Markets

Market Movers: UK economy grows by 0.2% in August after two months of stagnation

Market Movers: UK economy grows by 0.2% in August after two months of stagnation

After no growth in June and July

Professional Adviser
clock 14 October 2024 • 1 min read
Bank of England holds rates at 5.25% in final pre-election decision

Bank of England holds rates at 5.25% in final pre-election decision

'The MPC would not want to be perceived as politicking'

Cristian Angeloni
clock 20 June 2024 • 1 min read
Inflation officially back to Bank of England's target level of 2%

Inflation officially back to Bank of England's target level of 2%

Data shows a 2% year-on-year fall ‘in line with consensus expectations’

Hope Coumbe
clock 19 June 2024 • 2 min read