Economy US GDP shrinks 0.9%, 2nd straight negative quarter

While the negative growth is small, they are barely holding on. There's different definitons of what a recession is, but it would be hard to argue that this isn't one. Two negative quarters without a doubt, however small they are. Not really surprising with what is going on, and the average person is taking the brunt of it with high inflation. Most people don't realise we just had another one during Covid that has been almost forgotten:

107095382-1659017339596-3RbTh-quarterly-change-in-u-s-gross-domestic-product.png

https://www.cnbc.com/2022/07/28/gdp-q2-.html
 
While the negative growth is small, they are barely holding on. There's different definitons of what a recession is, but you it would be hard to argue that this isn't one. Most people don't realise we just had another one during Covid that has been almost forgotten:

107095382-1659017339596-3RbTh-quarterly-change-in-u-s-gross-domestic-product.png

https://www.cnbc.com/2022/07/28/gdp-q2-.html
everything was closed.......
 
everything was closed.......
Sure, and the hit to the GDP was massive. I remember when the stock market tanked, it was the biggest crash in decades, before the market was bailed out yet again. Now there's a bubble and a war that lead to gas shortage and inflation. Not looking great, but I haven't seen any forecast on third quarter.
 
Sure, and the hit to the GDP was massive. I remember when the stock market tanked, it was the biggest crash in decades, before the market was bailed out yet again. Now there's a bubble and a war that lead to gas shortage and inflation. Not looking great, but I haven't seen any forecast on third quarter.

Inflation had already hit and gas prices were way up before the war even started.
 
Sure, and the hit to the GDP was massive. I remember when the stock market tanked, it was the biggest crash in decades, before the market was bailed out yet again. Now there's a bubble and a war that lead to gas shortage and inflation. Not looking great, but I haven't seen any forecast on third quarter.
Estimated GDP for 3rd quarter from the Atlanta fed is 1.2% right now. Two weeks ago it was 1.8% growth.
 
Wow, with rate increases interest is going to hurt a lot of people.
US consumer borrowing surged $40.2 billion in June from the prior month, reflecting a jump in credit-card balances and a record increase in non-revolving credit.
 
Weird one, after months of projections being optimistic and then reality crushing them, they projected pretty much a flat jobs report and instead it was a healthy one

 
Fucking genius. If anyone says there's a problem, they're just sexists mansplaining economics.
Canada is one step ahead. Forget changing the definition, just change the word itself to something more inclusive.

 
Guess
Weird one, after months of projections being optimistic and then reality crushing them, they projected pretty much a flat jobs report and instead it was a healthy one


Doesn't make a lot of sense.
What does it mean? Two jobs for everyone?
 
Guess

Doesn't make a lot of sense.
What does it mean? Two jobs for everyone?


Everyone’s back to work, but with inflation the functional wages are “lower” with a lack of buying power, so the GDP is shrinking as purchasing slows. But it’s not hurting to a point where multiple companies are doing large layoffs.

I believe that’s how this all fits together
 
Weird one, after months of projections being optimistic and then reality crushing them, they projected pretty much a flat jobs report and instead it was a healthy one

Drives home that while a recession in the future is possible, there's no chance that we're currently in one. Also shows how ridiculous using anecdotes to draw conclusions about the state of the national labor market is idiotic.
 
Everyone’s back to work, but with inflation the functional wages are “lower” with a lack of buying power, so the GDP is shrinking as purchasing slows. But it’s not hurting to a point where multiple companies are doing large layoffs.

I believe that’s how this all fits together

no, @deadon is right in that it is mostly part time, service industry jobs as people lose their full time jobs and/or forced to leave the labor force

people are losing their could jobs at tech companies, corporate jobs at Walmart, etc and forced to get a service industry job or two

the jobs report also indicates the fastest growing sectors are service industry and hospitality, meanwhile loses in other areas.










And keep in mind how many people have left the work force as seen above. With child care and schools being questionable about remote learning, mandates, etc one person has been having to stay home, leaving the work force, or leaving their full time job to get a part time job to fill in these gabs in child care.

That coincides with debt reaching record highs, retail failing across the board, including both Walmart and their cyber counter part, amazing, laying off tens or even hundreds of thousands.
 
Back
Top