Gross domestic product, the broadest measure of goods and facilities produced in the economy as a whole, fell 0. 9 percent on an annualized basis in the three-month period from April to June, the Commerce Department said Thursday in its first reading of the data. Economists at Refinitiv had expected the report to show that the economy had grown by 0. 5%.
The recessions refer to two consecutive quarters of negative economic growth, and Thursday’s GDP report revealed back-to-back declines in growth, pushing the economy to technical criteria by one.
WHY IS INFLATION STILL SO HIGH AND WHEN WILL IT START TO COOL?
Economic output has already fallen in the first 3 months of the year, with GDP falling by 1. 6%, the worst functionality since spring 2020, when the economy was still under the clutches of the COVID-induced recession.
Roccato, a clinical professor of finance at the University of San Diego’s Knauss School of Business, argued that most Americans “feel the pinch” of peak inflation and recent polls confirm that sentiment.
A new national survey from Suffolk University/USA TODAY found that more than 58 percent of respondents said they ate less at restaurants, 48 percent drove less and forty-five percent said they were cutting grocery spending and postponing or canceling vacations due to inflation. Pressures. .
The national poll of 1,000 voters conducted july 22-25.
The Labor Department revealed earlier this month that inflation accelerated more than expected to a new four-decade high in June, and the value of fundamental needs remained incredibly high.
The branch said the consumer price index, a broad measure of the value of goods, which adds gasoline, groceries and rents, rose 9. 1% in June from a year earlier. Prices rose 1. 3% in the one-month period since May. These figures were well above the overall figure of 8. 8% and the monthly gain of 1% forecast by Refinitiv economists.
The knowledge marked the fastest inflation rate since December 1981.
Price increases have become widespread: energy costs rose 7. 5% in June compared to last month and 41. 6% compared to last year. Gasoline costs on average 59. 9% more than a year ago and 11. 2% more than in May. Meanwhile, the index rose 1% in June as consumers paid more for pieces such as grains, chicken, milk and new vegetables.
Roccato wrote Sunday that while knowledge shows wages are rising, they have risen enough to cope with rising inflation.
He noted that other people have jobs, but “we’re just not up to date right now. “
Earlier this month, it revealed that the U. S. hard work market was not being used to be a tough job market. UU. se remained strong in June as hiring exceeded expectations.
U. S. employers added 372,000 jobs during the month, up from 390,000 last month, indicating that inflation has had a limited effect on hiring so far. The unemployment rate remained at 3. 6% for the third consecutive month.
Average earnings rose 5. 1% on a year-on-year basis in June, compared with 5. 2% in May. However, the expansion lags behind customer inflation, which stands at 9. 1%.
Employment knowledge for July will be released on Friday.
On Sunday, Roccato laid out a recommendation on how consumers can emerge in the economic outlook, encouraging Americans to “increase this fund for tough days if they can. “
He also advised setting a new task now, because if the hard work market starts to collapse, make sure it’s in good shape from an employment perspective.
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The Roccatos invest in themselves education and learning new skills, especially if the labor market shrinks.
Megan Henney of FOX Business contributed to this report.