US GDP contracted 0.6% in the second quarter, less than initially forecast.
U.S. gross domestic product (GDP) contracted slightly less than originally forecast in the second quarter, by an annualized 0.6%, but remains in decline, which could cause plunge the world's largest economy into recession.
The Commerce Department's second estimate released Thursday is 0.3 points higher than the first estimate (-0.9%), published at the end of July.
In the first quarter already, GDP had fallen by 1.6%.
The commonly accepted definition of a recession is two consecutive quarters of declining GDP, but many economists, as well as the Biden administration, argue that the economy is not necessarily in a recession, however, because other more favorable indicators, such as the job market which remains dynamic.
The Department of Commerce underlines in its report that the difference between the first and the second estimate is mainly related to the fact that consumer spending (+1.5%) was better than initially estimated and inventories weighed less than expected.
Spending by state and local governments has also been higher than originally estimated.
The United States favors measuring GDP at an annualized rate , which compares to the previous quarter and then projects the change over the full year. Other advanced economies simply compare to the previous quarter.