Official data confirmed that the US economy contracted 0.6 percent year on year in the second quarter, in line with the previously announced second reading.
The US Department of Commerce’s Office of Economic Analysis said in a statement that final data on the country’s gross domestic product showed a contraction for the second straight quarter after a 1.6% contraction in the first quarter.
The new data comes at a turbulent time for the economy, although economists disagree on the possibility of a full-blown recession.
Six months of negative growth points to a recession, but US unemployment, labor market and consumption data still show some strength.
At its latest meeting, the US Federal Reserve lowered its forecast for US economic growth this year to 0.2 percent, compared with expectations of 1.7 percent in June last year.
Source: El Iktisad
