GDP report shows US economy shrank for second quarter in a row

A GDP report released Thursday morning shows the US economy shrank at a 0.9% rate from April through June, the 2nd straight quarterly contraction. This is following a decrease of 1.6 percent in the first quarter.

The smaller decrease in the second quarter primarily reflected an upturn in exports and a smaller decrease in federal government spending.

Some economists view the second-straight decline a recession. Consecutive quarters of falling GDP constitute one informal, though not definitive, indicator of a recession.

The report comes at a critical time. Consumers and businesses have been struggling under the weight of punishing inflation and higher borrowing costs. On Wednesday, the Federal Reserve raised its benchmark interest rate by a sizable three-quarters of a point for a second straight time.