WORLD US economy is at least teetering on recession: CNBC


US economy is at least teetering on recession: CNBC


07:42, July 28, 2022

Photo taken on Aug. 5, 2020 shows the U.S. Department of Commerce in Washington, D.C., the United States. (File photo: Xinhua)

NEW YORK, July 27 (Xinhua) -- The White House is sure the economy is not in a recession nor headed for one. Wall Street is pretty sure there is no recession now, but isn't as positive about what's ahead, reported CNBC on Tuesday.

"Looking at the data, the picture is indeed nuanced. Nothing right now is screaming recession, though there is plenty of chatter. The jobs market is still pretty good, manufacturing is weakening but still expanding, and consumers still seem fairly flush with cash, if somewhat less willing to part with it these days," said the report.

With second-quarter GDP data due out on Thursday, the question of whether the economy is merely in a natural slowdown after a robust year in 2021 or in a steeper downturn that could have extended repercussions, will be on everyone's mind, according to the report.

"This is not an economy that's in recession, but we're in a period of transition in which growth is slowing," Treasury Secretary Janet Yellen told "Meet the Press" on Sunday. "A recession is a broad-based contraction that affects many sectors of the economy. We just don't have that."

If nothing else, the U.S. economy stands at least a fair a chance of hitting the rule-of-thumb recession definition of two consecutive quarters with negative GDP readings. The first quarter saw a gross domestic product decline of 1.6 percent and an Atlanta Federal Reserve gauge is indicating the second quarter is on pace to hit the same number, noted the report.

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue