US recession fears grow as the economy contracts for the second quarter
The US economy unexpectedly contracted in the second quarter, with consumer spending growing at its slowest pace in two years and business spending declining, raising speculation the economy is on the cusp of a recession. Key points: Prices of groceries, gasoline and other basic necessities are rising at the fastest pace since 1981 Job growth averaged 456,700 per month in the first half of the year Joe Biden said: “We also see signs of economic progress in the second quarter” By some definitions, a second consecutive quarterly decline in gross domestic product (GDP) would be considered a “technical recession”. US President Joe Biden dismissed talk of a recession, however, pointing to a “historically strong” job market along with strong consumer spending and business investment. But contraction, on 0.9 percent annual rate last quarter, attracted widespread attention because of concerns about the growing economy. That could deter the Federal Reserve from continuing to increase inte