U.S Economy faces Recession; GDP drops.

The US economy is in recession as second quarter GDP for 2022 declined by 0.9 percent.

The world’s largest economy experienced a slowdown as prices for products and services significantly increased, a trend that was partly caused by the global energy crisis and had spilled over into other sectors of the economy.

Following a 1.6 percent annual loss in the previous quarter, the United States of America saw a 0.9 percent contraction in its gross domestic product in the second quarter of 2022.

Personal consumption, a key indicator of the health of the US consumer despite the contraction, increased by 1% in the second quarter compared to 1.8 % in the first, but it still shows signs of resilience. It’s important to note that slower company inventory increase was what caused the downturn.