US GDP fell by 0.6% in the second quarter
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The US Department of Commerce has changed its estimate of the decline in the country’s GDP in the second quarter, after analyzing additional data on consumer activity. Now the decline in GDP compared to last year is estimated at 0.6%, according to report Bureau of Economic Analysis. Earlier reduction evaluated at 0.9%.
The decline in real GDP is due “to falling private investment in inventories, investment in fixed assets, federal government spending, and state and local government spending,” the report said. At the same time, exports and consumer spending rose in the second quarter compared to last year.
In the first quarter, the US economy decreased by 1.6% in annual terms. Thus, this is the second consecutive quarterly decline in GDP, which corresponds to the standard definition of a recession. However, the National Bureau of Economic Research defines a recession as “a significant economy-wide decline in economic activity lasting more than a few months, usually noticeable in output, employment, real income, and other indicators.”
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