(A customer holds a credit card at the pay-at-the-pump gasoline pump in Rolling Meadow, Ill., Thursday, June 30, 2022. The U.S. economy shrank from April through June for a second straight quarter, contracting at a 0.9% annual pace and raising fears that the nation may be approaching a recession. The decline that the Commerce Department reported Thursday, July 28, in the gross domestic product — the broadest gauge of the economy — followed a 1.6% annual drop from January through March. (AP Photo/Nam Y. Huh)
By PAUL WISEMAN AP Economics Writer
WASHINGTON (AP) — The U.S. economy shrank from April through June for a second straight quarter, contracting at a 0.9% annual pace and raising fears that the nation may be approaching a recession. The decline in the gross domestic product — the broadest gauge of the economy — followed a 1.6% annual drop from January through March. Consecutive quarters of falling GDP constitute one informal, though not definitive, indicator of a recession. The report comes at a critical time. Consumers and businesses have been struggling under the weight of punishing inflation and higher borrowing costs. On Wednesday, the Federal Reserve raised its benchmark interest rate by a sizable three-quarters of a point for a second straight time.