A key measure of economic output fell for the second straight quarter, raising fears that the United States could be entering a recession — or perhaps that one had already begun.
Gross domestic product, adjusted for inflation, fell 0.2% in the second quarter, the Commerce Department said Thursday. That drop followed a decline of 0.4% in the first quarter. The estimates for both periods will be revised in coming months as government statisticians get more complete data.
News of the back-to-back contractions heightened a debate in Washington over whether a recession had begun and, if so, whether U.S. President Joe Biden was to blame. Economists largely say that conditions do not meet the formal definition of a recession but that the risks of one are rising.