Those who have been following trends of the U.S. economy this year are aware that things aren’t all fine and dandy. There have been major indicators that America is heading towards a slight recession and the last two quarters have delivered results to support that claim.
For the second straight quarter, the U.S. economy experienced a solid dip, as reported by the Commerce Department on Thursday. This comes after months of recession talk, and speculation of economic strife.
According to the Bureau of Economic Analysis, this quarter showed a 0.9% year-over-year decrease in advance estimate for gross domestic products, also known as GDP.
The initial panic was caused a few months ago when a Q1 reading showed the first negative annualized reading since Q2 of 2020. The Q1 results of early this year were a solid 1.6% decrease, causing many to wonder where the future of the U.S. economy is headed, and whether or not we need to be worried.
Ultimately, it would be ignorant not to remain vigilant at a time like this. Numbers are numbers, and to pretend like it’s not happening could lead to bad decisions down the line. However, an all-out panic isn’t advisable either, for the economic tide can always change at the turn of a dime.