Hey American's ! Look Over Here We Have Slipped Into A Recession
While the media has many Americans' eyes and ears on Abortion rights, Biden making a fool of himself on the world stage, and another spectacular dramatic Trump investigation, we have slipped into a recession.
Key Fed GDP tracker turns negative, the signaling recession is here
The Atlanta Fed's GDPNow model estimates -1.0% growth for Q2
The Federal Reserve's key real-time model for tracking U.S. economic activity has turned negative, signaling that the nation could already have entered a recession.
The GDPNow gauge, a widely watched measurement from the Atlanta Federal Reserve Bank, indicated Thursday that real gross domestic product shrank by 1.0% in the second quarter from April through June.
While the official advance estimate of Q2 performance will not be released for another month, this preliminary reading shows the second quarter in a row of negative growth in the economy after GDP contracted 1.6% in Q1.
If further readings confirm that the economy did, indeed, shrink in Q2, the technical criteria for a recession – which is defined by two consecutive quarters of negative growth – will be met. However, the National Bureau of Economic Research (NBER) is the authority that makes the official determination.
Economists expect some economic slowdown from the interest rate hikes that the Fed implemented as it attempts to rein in inflation, which hit a FOUR-decade high in May.
Fed Chair Jerome Powell said Wednesday that there was some risk that policymakers might go too far in slowing economic growth, but that failing to bring inflation to heel represents a greater risk.
The GDPNow tracker already signaled earlier this month that the economy was headed for the imminent recession when it showed two weeks ago that economic growth in the spring flat to 0%.
So, some are predicting food shortages this winter, are we headed into a full-blown depression? When did we have our last Depression?
Any thoughts on this current economic mess?
The Consumer Price Index for All Urban Consumers (CPI-U) increased 9.1 percent over the last 12 months to an index level of 296.311 (1982-84=100), the largest 12-month increase since the period ending November 1981. For the month, the index increased 1.4 percent prior to seasonal adjustment. The all items less food and energy index rose 5.9 percent over the last 12 months. The energy index rose 41.6 percent over the last year, the largest 12-month increase since the period ending April 1980. The food index increased 10.4 percent for the 12-months ending June, the largest 12-month increase since the period ending February 1981. source: U.S. Bureau of Labor Statistics
A recession is a significant decline in economic activity that lasts for months or even years. Experts declare a recession when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time. Recessions are considered an unavoidable part of the business cycle—or the regular cadence of expansion and contraction that occurs in a nation’s economy.
GDP two months in a row – 1st quarter 0.4%
Retail sales fall 0.3% in May from June as surging inflation crimps spending on non-essentials https://abcnews.go.com/US/wireStory/ret … s-85406791
https://www.nytimes.com/2022/04/28/busi … -2022.html
The second quarter will be released on July 28
Consumer spending has been decreasing monthly
May 2022 0.2 %
April 2022 0.6 %
March 2022 1.2 %
February 2022 0.6 %
Consumer spending, or personal consumption expenditures (PCE), is the value of the goods and services purchased by, or on the behalf of, U.S. residents. At the national level, BEA publishes annual, quarterly, and monthly estimates of consumer spending.
Retail sales nothing says more than a chart.
https://tradingeconomics.com/united-states/retail-sales
July 28, will give us a brand new inflation number... So, if you are of the belief that our economy is great, you may want to be holding on to your chair on July 28th, 2022.
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