New York July 28 2022: The US economy shrank for a second straight quarter as decades-high inflation undercut consumer spending and sizable Federal Reserve interest-rate hikes stymied business investment and housing demand.
Gross domestic product fell at a 0.9 per cent annualized rate after a 1.6 per cent decline in the first three months of the year, the Commerce Department’s preliminary estimate showed Thursday. Personal consumption, the biggest part of the economy, rose at a 1 per cent pace, a deceleration from the prior period.
The median projection in a Bloomberg survey of economists called for a 0.4 per cent advance in GDP and a 1.2 per cent rise in consumer spending.
