Real gross domestic product (GDP) decreased at an annual rate of 0.6 percent in the second quarter

[mahatmakanejeeves]

Source: Bureau of Economic Analysis

September 29, 2022

Gross Domestic Product (Third Estimate), GDP by Industry, and Corporate Profits (Revised), 2nd Quarter 2022 and Annual Update

Real gross domestic product (GDP) decreased at an annual rate of 0.6 percent in the second quarter of 2022, following a decrease of 1.6 percent in the first quarter. The second-quarter decrease was the same as previously estimated in the "second" estimate released in August. The smaller decrease in the second quarter, compared to the first quarter, reflected an upturn in exports and an acceleration in consumer spending.

Profits increased 4.6 percent at a quarterly rate in the second quarter after increasing 0.1 percent in the first quarter.

Private goods-producing industries decreased 10.4 percent, private services producing industries increased 2.0 percent, and government decreased 0.2 percent. Overall, 9 of 22 industry groups contributed to the second-quarter decline in real GDP.

Today's release reflects the results of the 2022 Annual Update of the National Economic Accounts.



Read more: https://www.bea.gov/news/2022/gross-domestic-product-third-estimate-gdp-industry-and-corporate-profits-revised-2nd

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News story coming ... Until then:

https://www.bea.gov/news/2022/gross-domestic-product-third-estimate-gdp-industry-and-corporate-profits-revised-2nd

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Thursday, September 29, 2022

BEA 22-46

Gross Domestic Product (Third Estimate), GDP by Industry, and Corporate Profits (Revised), 2nd Quarter 2022 and Annual Update

Real gross domestic product (GDP) decreased at an annual rate of 0.6 percent in the second quarter of 2022 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 1.6 percent (same as previously published).

The "third" estimate of GDP released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the decrease in real GDP was also 0.6 percent. The update primarily reflected an upward revision to consumer spending that was offset by a downward revision to exports. Imports, which are a subtraction in the calculation of GDP, were revised down ( refer to "Updates to GDP" ).

{snip}

[speak easy]

1. OK. Let's raise interest rates some more.

[gab13by13]

2. I was about to post the same thing,

pretty soon the unemployment numbers are going to go up.

We had high inflation with low unemployment, now we are going to have high inflation with high unemployment.

Not to mention everyone's 401k's tanking.

[mathematic]

6. Meanwhile we just posted one of the lowest weekly jobless claims on record

So I guess wake me up when we start seeing that high unemployment.

Since the Q2, which ended in June and was first estimated at the end of July, we've seen almost 0 cpi inflation and about 800k new jobs, not including Sept #s will be reported in early Oct.

People have been predicting the imminent collapse of the economy for months now and it hasn't happened and actually the opposite has happened, with jobs up and inflation down. My point is that the economy is a lot more durable that people have given it credit for.

[jaxexpat]

3. I think it's because this is how industry reacts to a reticent workforce.

The PTB are trying to discipline the workforce into accepting a lowered lifestyle as the status quo. That it detrimentally effects consumers and generally poisons the marketplace means nothing to the calculators. Numbers don't lie. Salaries must be maintained at the executive level in order for that privileged class to continue their expensive power hobby: US politics.

[bucolic_frolic]

4. Stagflation Party like it's 1975

Pricing fits the profit model of the boardroom which enacted management pay models based on incentives and bonuses. People do understand they are paid on profitability.

[speak easy]

5. "Current‑dollar GDP increased 8.5 percent at an annual rate"

The GDP deflator is unreliable when inflation is highly uneven across sectors.