Trading Economics/Staff/7-28-2022
“The American economy shrank an annualized 0.9% on quarter in Q2 2022, following a 1.6% drop in Q1 and technically entering a recession, the advance estimate showed. Most investors were expecting a 0.5% growth although some were betting on a negative reading. Inventories and business investment were the main drags. Inventories declined mostly at general merchandise stores as well as motor vehicle dealers. Residential investment sank 14%, structures 11.7% and equipment 2.7%. At the same time, PCE slowed and grew 1%, with spending on goods falling 4.4% and government consumption went down 1.9%, partially reflecting the sale of crude oil from the Strategic Petroleum Reserve. On the other hand, net trade made a positive contribution for the first time in two years, as exports jumped 18%, led by industrial supplies, materials and travel and imports were up 3.1%. Fed Chair Powell recently said he did not believe the US was in a recession and pointed to strength in the economy.”
United States GDP growth rate
USAGOLD note: Gold and silver added to earlier gains upon release of this report.
