Business News Asia
The U.S. Department of Commerce yesterday released its second estimate for the second-quarter gross domestic product (GDP). According to this estimate, the U.S. economy contracted by 0.6% after falling by 1.6% in the first quarter.
Earlier, the U.S. Department of Commerce published its first estimate, showing that GDP contracted by 0.9% in the second quarter.
Two consecutive quarters of economic decline put the U.S. into a technical recession.
The chairman of the Federal Reserve (Fed) emphasizes that he does not believe the U.S. economy will enter a recession. The reason is that many sectors of the economy remain strong, including the labor market.
The NBER has always been the authority that judges the expansion or recession of the U.S. economy. It considers employment, consumption, industrial production, and personal income before issuing an official statement.