It's tempting to say the U.S. is inching toward a recession, or it's already in one.
At least that's the takeaway some economists had from Thursday's GDP report, which showed that the U.S. economy shrank at a seasonally adjusted annual rate of 1.4% in the first quarter of 2022.
This reading comes as inflation is at a 40-year high, forcing Americans to cut back on spending to stay afloat. Yet unemployment is remarkably low. A steep pullback in exports resulting from supply chain bottlenecks had the most significant contribution to GDP last quarter.
And a one-quarter contraction doesn't necessarily mean a recession is on the way.
Elisabeth Buchwald | USA Today