The US economy contracted in the second quarter

US Department of Commerce released data

The US Department of Commerce released its second estimates for the Gross Domestic Product (GDP) data for the April-June period.

Accordingly, annualized GDP in the USA decreased by 0.6 percent in the second quarter of the year.

In the said period, while a slight upward revision was made in the GDP data, the market expectation was that the economy would shrink by 0.8 percent in the second quarter.

In the pioneering data on the country's GDP data released in July, it was noted that the economy contracted by 0.9 percent in the second quarter of the year. Thus, the economy in the USA contracted less than expected in the second quarter of the year.

The economy is technically in recession

The US economy contracted 1.6 percent in the first quarter of the year. The country's economy technically entered recession by shrinking in the second quarter after the first quarter of this year.

In this period, the contraction in the US economy was affected by the decrease in private stock investments, fixed investment in housing, federal public expenditures, and state and local public expenditures. In the same period, exports and personal consumption expenditures increased.

On the other hand, the upward revisions in consumer expenditures and private stock investments were balanced by the downward revisions in residential fixed investments.

The increase in personal consumption expenditures was revised from 1 percent to 1.5 percent in this period.

In the second quarter of the year, the personal consumption expenditures price index increased by 7.1 percent.

The increase in the core personal consumption expenditures price index, which excludes food and energy expenditures, remained at 4.4 percent.