Why the US is not in a recession even as data shows the economy shrank

Why the US is not in a recession even as data shows the economy shrank

Summary : Back-to-back quarters of economic contraction are widely regarded as the criterion for a technical recession, and for most of the US’s downturns, the rule has matched the National Bureau of Economic Research’s recession dates.

Americans are pouring loads of fuel into the economic engine

Strong consumer spending is a necessary component of healthy economic growth. It counts for about 70% of economic activity, meaning a decline would remove a major driver of the US’s rebound. Unless spending unexpectedly plummets, shoppers’ resilient demand is likely to keep the US far from a recession.

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